ZM
Zoom Video Communications Inc
Price:  
86.59 
USD
Volume:  
3,485,635.00
United States | Software
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Zoom WACC - Weighted Average Cost of Capital

The WACC of Zoom Video Communications Inc (ZM) is 8.7%.

The Cost of Equity of Zoom Video Communications Inc (ZM) is 13.40%.
The Cost of Debt of Zoom Video Communications Inc (ZM) is 5.00%.

Range Selected
Cost of equity 11.40% - 15.40% 13.40%
Tax rate 15.70% - 24.00% 19.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 9.6% 8.7%
WACC

Zoom WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.65 1.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 15.40%
Tax rate 15.70% 24.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 9.6%
Selected WACC 8.7%