PYPL
PayPal Holdings Inc
Price:  
83.01 
USD
Volume:  
7,985,404.00
United States | IT Services
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PayPal WACC - Weighted Average Cost of Capital

The WACC of PayPal Holdings Inc (PYPL) is 7.5%.

The Cost of Equity of PayPal Holdings Inc (PYPL) is 8.05%.
The Cost of Debt of PayPal Holdings Inc (PYPL) is 4.25%.

Range Selected
Cost of equity 6.90% - 9.20% 8.05%
Tax rate 17.60% - 19.40% 18.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.5% - 8.5% 7.5%
WACC

PayPal WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.66 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.20%
Tax rate 17.60% 19.40%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 4.50%
After-tax WACC 6.5% 8.5%
Selected WACC 7.5%