VMW
VMware Inc
Price:  
142.48 
USD
Volume:  
2,689,910.00
United States | Software
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VMware WACC - Weighted Average Cost of Capital

The WACC of VMware Inc (VMW) is 7.6%.

The Cost of Equity of VMware Inc (VMW) is 8.25%.
The Cost of Debt of VMware Inc (VMW) is 4.45%.

Range Selected
Cost of equity 6.90% - 9.60% 8.25%
Tax rate 13.40% - 18.80% 16.10%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.4% - 8.8% 7.6%
WACC

VMware WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.65 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.60%
Tax rate 13.40% 18.80%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 4.90%
After-tax WACC 6.4% 8.8%
Selected WACC 7.6%