UPS
United Parcel Service Inc
Price:  
127.54 
USD
Volume:  
3,519,395.00
United States | Air Freight & Logistics
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UPS WACC - Weighted Average Cost of Capital

The WACC of United Parcel Service Inc (UPS) is 7.9%.

The Cost of Equity of United Parcel Service Inc (UPS) is 8.85%.
The Cost of Debt of United Parcel Service Inc (UPS) is 4.30%.

Range Selected
Cost of equity 7.80% - 9.90% 8.85%
Tax rate 22.00% - 22.20% 22.10%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.0% - 8.8% 7.9%
WACC

UPS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.85 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 9.90%
Tax rate 22.00% 22.20%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.60%
After-tax WACC 7.0% 8.8%
Selected WACC 7.9%