RY.TO
Royal Bank of Canada
Price:  
165.90 
CAD
Volume:  
476,074.00
Canada | Banks
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RY.TO WACC - Weighted Average Cost of Capital

The WACC of Royal Bank of Canada (RY.TO) is 6.0%.

The Cost of Equity of Royal Bank of Canada (RY.TO) is 9.25%.
The Cost of Debt of Royal Bank of Canada (RY.TO) is 5.00%.

Range Selected
Cost of equity 7.90% - 10.60% 9.25%
Tax rate 20.10% - 20.90% 20.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 6.5% 6.0%
WACC

RY.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.93 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.60%
Tax rate 20.10% 20.90%
Debt/Equity ratio 1.64 1.64
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 6.5%
Selected WACC 6.0%