OTIS
Otis Worldwide Corp
Price:  
97.79 
USD
Volume:  
1,460,836.00
United States | Machinery
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Otis WACC - Weighted Average Cost of Capital

The WACC of Otis Worldwide Corp (OTIS) is 10.3%.

The Cost of Equity of Otis Worldwide Corp (OTIS) is 8.45%.
The Cost of Debt of Otis Worldwide Corp (OTIS) is 28.95%.

Range Selected
Cost of equity 7.10% - 9.80% 8.45%
Tax rate 27.50% - 28.60% 28.05%
Cost of debt 4.50% - 53.40% 28.95%
WACC 6.5% - 14.1% 10.3%
WACC

Otis WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.7 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.80%
Tax rate 27.50% 28.60%
Debt/Equity ratio 0.18 0.18
Cost of debt 4.50% 53.40%
After-tax WACC 6.5% 14.1%
Selected WACC 10.3%