The WACC of Starbucks Corp (SBUX) is 6.8%.
Range | Selected | |
Cost of equity | 6.20% - 8.40% | 7.30% |
Tax rate | 21.20% - 21.90% | 21.55% |
Cost of debt | 4.00% - 4.60% | 4.30% |
WACC | 5.8% - 7.8% | 6.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.5 | 0.64 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.20% | 8.40% |
Tax rate | 21.20% | 21.90% |
Debt/Equity ratio | 0.14 | 0.14 |
Cost of debt | 4.00% | 4.60% |
After-tax WACC | 5.8% | 7.8% |
Selected WACC | 6.8% | |