The WACC of PriceSmart Inc (PSMT) is 6.6%.
Range | Selected | |
Cost of equity | 5.40% - 8.00% | 6.70% |
Tax rate | 32.90% - 33.20% | 33.05% |
Cost of debt | 6.80% - 7.00% | 6.90% |
WACC | 5.4% - 7.8% | 6.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.34 | 0.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.40% | 8.00% |
Tax rate | 32.90% | 33.20% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 6.80% | 7.00% |
After-tax WACC | 5.4% | 7.8% |
Selected WACC | 6.6% | |