Cost
of Capital by SectorData Used: Value Line database, of 6870 firms
Date of Analysis: Data used is as of January 2009
can be obtained by clicking here
on
which companies are included in each industry
| Industry Name | Number of Firms | Beta | Cost of Equity | E/(D+E) | Std Dev in Stock | Cost of Debt | Tax Rate | After-tax Cost of Debt | D/(D+E) | Cost of Capital |
| Advertising | 30 | 1.43 | 9.37% | 44.19% | 102.72% | 6.21% | 18.90% | 5.04% | 55.81% | 6.95% |
| Aerospace/Defense | 66 | 1.27 | 8.58% | 78.61% | 47.22% | 4.71% | 24.10% | 3.57% | 21.39% | 7.51% |
| Air Transport | 44 | 1.15 | 7.98% | 56.11% | 64.45% | 6.21% | 23.00% | 4.78% | 43.89% | 6.58% |
| Apparel | 53 | 1.14 | 7.91% | 69.29% | 65.77% | 6.21% | 17.21% | 5.14% | 30.71% | 7.06% |
| Auto & Truck | 20 | 1.49 | 9.65% | 35.24% | 39.50% | 4.21% | 24.36% | 3.18% | 64.76% | 5.46% |
| Auto Parts | 54 | 1.56 | 10.00% | 51.50% | 56.51% | 5.21% | 19.61% | 4.19% | 48.50% | 7.18% |
| Bank | 477 | 0.71 | 5.78% | 52.21% | 30.43% | 4.21% | 25.91% | 3.12% | 47.79% | 4.51% |
| Bank (Canadian) | 8 | 0.86 | 6.50% | 90.61% | 19.23% | 2.71% | 15.08% | 2.30% | 9.39% | 6.10% |
| Bank (Midwest) | 39 | 0.91 | 6.75% | 59.18% | 31.49% | 4.21% | 26.81% | 3.08% | 40.82% | 5.25% |
| Beverage | 41 | 0.95 | 6.95% | 84.02% | 57.12% | 5.21% | 16.46% | 4.35% | 15.98% | 6.54% |
| Biotechnology | 108 | 1.25 | 8.46% | 90.92% | 70.24% | 6.21% | 3.59% | 5.99% | 9.08% | 8.23% |
| Building Materials | 52 | 1.39 | 9.16% | 49.24% | 75.67% | 6.21% | 18.44% | 5.07% | 50.76% | 7.08% |
| Cable TV | 25 | 1.56 | 9.99% | 52.97% | 60.94% | 6.21% | 22.97% | 4.78% | 47.03% | 7.54% |
| Canadian Energy | 12 | 1.22 | 8.31% | 73.69% | 32.93% | 4.21% | 27.82% | 3.04% | 26.31% | 6.92% |
| Chemical (Basic) | 19 | 1.26 | 8.52% | 77.45% | 45.10% | 4.71% | 19.29% | 3.80% | 22.55% | 7.46% |
| Chemical (Diversified) | 33 | 1.21 | 8.28% | 78.93% | 41.73% | 4.71% | 25.47% | 3.51% | 21.07% | 7.27% |
| Chemical (Specialty) | 88 | 1.18 | 8.13% | 73.67% | 61.08% | 6.21% | 18.99% | 5.03% | 26.33% | 7.32% |
| Coal | 18 | 1.98 | 12.13% | 67.56% | 58.47% | 5.21% | 10.52% | 4.66% | 32.44% | 9.71% |
| Computer Software/Svcs | 322 | 1.22 | 8.33% | 92.79% | 116.43% | 6.21% | 12.65% | 5.42% | 7.21% | 8.12% |
| Computers/Peripherals | 125 | 1.29 | 8.68% | 84.49% | 107.82% | 6.21% | 9.90% | 5.60% | 15.51% | 8.21% |
| Diversified Co. | 113 | 1.25 | 8.45% | 38.32% | 55.69% | 5.21% | 20.23% | 4.16% | 61.68% | 5.80% |
| Drug | 342 | 1.16 | 8.02% | 87.33% | 99.74% | 6.21% | 5.96% | 5.84% | 12.67% | 7.74% |
| E-Commerce | 54 | 1.50 | 9.70% | 89.74% | 57.81% | 5.21% | 13.09% | 4.53% | 10.26% | 9.17% |
| Educational Services | 34 | 0.84 | 6.39% | 97.82% | 54.64% | 5.21% | 20.80% | 4.13% | 2.18% | 6.34% |
| Electric Util. (Central) | 24 | 0.82 | 6.32% | 48.12% | 23.17% | 3.21% | 33.02% | 2.15% | 51.88% | 4.16% |
| Electric Utility (East) | 26 | 0.74 | 5.92% | 57.70% | 24.46% | 3.21% | 32.09% | 2.18% | 42.30% | 4.34% |
| Electric Utility (West) | 16 | 0.79 | 6.14% | 52.44% | 20.54% | 3.21% | 30.47% | 2.23% | 47.56% | 4.28% |
| Electrical Equipment | 83 | 1.37 | 9.07% | 80.95% | 58.38% | 5.21% | 14.23% | 4.47% | 19.05% | 8.20% |
| Electronics | 173 | 1.31 | 8.77% | 68.67% | 76.79% | 6.21% | 11.87% | 5.47% | 31.33% | 7.74% |
| Entertainment | 84 | 1.66 | 10.52% | 55.79% | 104.32% | 6.21% | 17.17% | 5.14% | 44.21% | 8.14% |
| Entertainment Tech | 33 | 1.45 | 9.44% | 89.65% | 76.24% | 6.21% | 13.67% | 5.36% | 10.35% | 9.02% |
| Environmental | 79 | 1.11 | 7.76% | 66.73% | 81.44% | 6.21% | 15.45% | 5.25% | 33.27% | 6.92% |
| Financial Svcs. (Div.) | 296 | 1.27 | 8.55% | 27.67% | 68.74% | 6.21% | 17.93% | 5.10% | 72.33% | 6.05% |
| Food Processing | 109 | 0.80 | 6.20% | 73.99% | 48.20% | 4.71% | 21.67% | 3.69% | 26.01% | 5.55% |
| Food Wholesalers | 18 | 0.73 | 5.84% | 62.70% | 42.40% | 4.71% | 27.39% | 3.42% | 37.30% | 4.94% |
| Foreign Electronics | 10 | 1.18 | 8.13% | 70.28% | 28.36% | 3.71% | 37.04% | 2.34% | 29.72% | 6.41% |
| Furn/Home Furnishings | 34 | 1.29 | 8.68% | 60.33% | 48.86% | 4.71% | 23.99% | 3.58% | 39.67% | 6.65% |
| Grocery | 14 | 0.84 | 6.40% | 87.79% | 27.38% | 3.71% | 32.96% | 2.49% | 12.21% | 5.92% |
| Healthcare Information | 29 | 1.05 | 7.44% | 83.42% | 59.30% | 5.21% | 16.47% | 4.35% | 16.58% | 6.92% |
| Heavy Construction | 14 | 1.48 | 9.63% | 91.33% | 46.33% | 4.71% | 34.26% | 3.10% | 8.67% | 9.06% |
| Homebuilding | 32 | 1.36 | 9.00% | 38.15% | 52.02% | 5.21% | 6.13% | 4.89% | 61.85% | 6.46% |
| Hotel/Gaming | 68 | 1.70 | 10.71% | 41.22% | 60.88% | 6.21% | 17.97% | 5.09% | 58.78% | 7.41% |
| Household Products | 26 | 1.08 | 7.61% | 81.16% | 38.74% | 4.21% | 29.87% | 2.95% | 18.84% | 6.73% |
| Human Resources | 31 | 1.44 | 9.42% | 84.45% | 45.04% | 4.71% | 29.77% | 3.31% | 15.55% | 8.47% |
| Industrial Services | 167 | 1.20 | 8.20% | 69.45% | 66.22% | 6.21% | 19.26% | 5.01% | 30.55% | 7.22% |
| Information Services | 34 | 1.22 | 8.30% | 82.05% | 39.30% | 4.21% | 20.44% | 3.35% | 17.95% | 7.41% |
| Insurance (Life) | 35 | 1.17 | 8.08% | 82.16% | 57.11% | 5.21% | 25.86% | 3.86% | 17.84% | 7.33% |
| Insurance (Prop/Cas.) | 78 | 0.91 | 6.78% | 98.15% | 29.81% | 3.71% | 20.26% | 2.96% | 1.85% | 6.71% |
| Internet | 208 | 1.41 | 9.26% | 96.09% | 83.36% | 6.21% | 7.50% | 5.74% | 3.91% | 9.13% |
| Investment Co. | 17 | 0.83 | 6.34% | 87.08% | 20.47% | 3.21% | 0.00% | 3.21% | 12.92% | 5.93% |
| Investment Co.(Foreign) | 16 | 1.31 | 8.74% | 95.10% | 28.71% | 3.71% | 2.11% | 3.63% | 4.90% | 8.49% |
| Machinery | 124 | 1.39 | 9.16% | 64.20% | 51.63% | 5.21% | 22.71% | 4.03% | 35.80% | 7.32% |
| Manuf. Housing/RV | 18 | 1.32 | 8.80% | 66.61% | 50.24% | 5.21% | 14.98% | 4.43% | 33.39% | 7.34% |
| Maritime | 56 | 1.30 | 8.73% | 35.00% | 63.51% | 6.21% | 7.08% | 5.77% | 65.00% | 6.81% |
| Medical Services | 160 | 1.10 | 7.72% | 64.66% | 81.82% | 6.21% | 18.36% | 5.07% | 35.34% | 6.78% |
| Medical Supplies | 252 | 1.17 | 8.04% | 88.28% | 79.70% | 6.21% | 12.51% | 5.43% | 11.72% | 7.74% |
| Metal Fabricating | 35 | 1.56 | 9.99% | 79.72% | 72.85% | 6.21% | 20.43% | 4.94% | 20.28% | 8.96% |
| Metals & Mining (Div.) | 78 | 1.69 | 10.64% | 82.01% | 85.30% | 6.21% | 9.29% | 5.63% | 17.99% | 9.74% |
| Natural Gas (Div.) | 34 | 1.20 | 8.23% | 63.06% | 37.55% | 4.21% | 24.19% | 3.19% | 36.94% | 6.37% |
| Natural Gas Utility | 25 | 0.69 | 5.67% | 53.96% | 25.42% | 3.71% | 24.52% | 2.80% | 46.04% | 4.35% |
| Newspaper | 16 | 1.16 | 8.00% | 53.64% | 41.72% | 4.71% | 23.53% | 3.60% | 46.36% | 5.96% |
| Office Equip/Supplies | 26 | 1.11 | 7.76% | 62.36% | 45.03% | 4.71% | 22.76% | 3.64% | 37.64% | 6.21% |
| Oil/Gas Distribution | 19 | 0.89 | 6.68% | 54.96% | 49.51% | 4.71% | 9.48% | 4.26% | 45.04% | 5.59% |
| Oilfield Svcs/Equip. | 112 | 1.56 | 9.99% | 70.25% | 49.11% | 4.71% | 22.07% | 3.67% | 29.75% | 8.11% |
| Packaging & Container | 33 | 1.27 | 8.54% | 54.10% | 49.43% | 4.71% | 24.65% | 3.55% | 45.90% | 6.25% |
| Paper/Forest Products | 38 | 1.20 | 8.23% | 45.85% | 54.80% | 5.21% | 13.66% | 4.50% | 54.15% | 6.21% |
| Petroleum (Integrated) | 25 | 1.34 | 8.89% | 87.21% | 39.02% | 4.21% | 33.79% | 2.79% | 12.79% | 8.11% |
| Petroleum (Producing) | 188 | 1.24 | 8.42% | 72.69% | 80.53% | 6.21% | 13.98% | 5.34% | 27.31% | 7.58% |
| Pharmacy Services | 19 | 0.94 | 6.89% | 80.97% | 36.98% | 4.21% | 21.13% | 3.32% | 19.03% | 6.21% |
| Power | 66 | 1.63 | 10.36% | 48.10% | 100.56% | 6.21% | 6.25% | 5.82% | 51.90% | 8.00% |
| Precious Metals | 75 | 1.41 | 9.28% | 89.47% | 74.43% | 6.21% | 5.94% | 5.84% | 10.53% | 8.92% |
| Precision Instrument | 90 | 1.47 | 9.54% | 81.53% | 93.64% | 6.21% | 14.38% | 5.32% | 18.47% | 8.76% |
| Property Management | 17 | 1.38 | 9.10% | 26.12% | 36.18% | 4.21% | 19.27% | 3.40% | 73.88% | 4.89% |
| Publishing | 27 | 1.24 | 8.39% | 42.17% | 43.95% | 4.71% | 20.73% | 3.73% | 57.83% | 5.70% |
| R.E.I.T. | 144 | 1.35 | 8.94% | 65.28% | 42.47% | 4.71% | 1.21% | 4.65% | 34.72% | 7.45% |
| Railroad | 15 | 1.25 | 8.46% | 70.66% | 33.95% | 4.21% | 30.62% | 2.92% | 29.34% | 6.83% |
| Recreation | 64 | 1.41 | 9.26% | 61.51% | 61.82% | 6.21% | 19.12% | 5.02% | 38.49% | 7.63% |
| Reinsurance | 11 | 0.91 | 6.74% | 89.79% | 25.12% | 3.71% | 8.87% | 3.38% | 10.21% | 6.40% |
| Restaurant | 68 | 1.26 | 8.51% | 80.02% | 53.39% | 5.21% | 20.10% | 4.16% | 19.98% | 7.64% |
| Retail (Special Lines) | 155 | 1.26 | 8.51% | 79.32% | 59.73% | 5.21% | 23.08% | 4.01% | 20.68% | 7.58% |
| Retail Automotive | 16 | 1.31 | 8.78% | 59.92% | 36.20% | 4.21% | 34.23% | 2.77% | 40.08% | 6.37% |
| Retail Building Supply | 8 | 1.01 | 7.28% | 79.15% | 31.20% | 4.21% | 28.12% | 3.03% | 20.85% | 6.39% |
| Retail Store | 38 | 1.01 | 7.24% | 76.75% | 43.75% | 4.71% | 25.68% | 3.50% | 23.25% | 6.37% |
| Securities Brokerage | 32 | 1.37 | 9.04% | 17.78% | 57.09% | 5.21% | 22.16% | 4.06% | 82.22% | 4.94% |
| Semiconductor | 122 | 1.81 | 11.25% | 88.25% | 61.60% | 6.21% | 10.48% | 5.56% | 11.75% | 10.59% |
| Semiconductor Equip | 16 | 1.78 | 11.10% | 88.02% | 41.96% | 4.71% | 22.03% | 3.67% | 11.98% | 10.21% |
| Shoe | 19 | 1.23 | 8.35% | 96.47% | 42.43% | 4.71% | 30.35% | 3.28% | 3.53% | 8.17% |
| Steel (General) | 20 | 1.71 | 10.77% | 75.66% | 45.90% | 4.71% | 29.15% | 3.34% | 24.34% | 8.96% |
| Steel (Integrated) | 14 | 1.96 | 11.99% | 60.62% | 57.46% | 5.21% | 29.90% | 3.65% | 39.38% | 8.71% |
| Telecom. Equipment | 110 | 1.49 | 9.65% | 88.72% | 92.10% | 6.21% | 12.08% | 5.46% | 11.28% | 9.18% |
| Telecom. Services | 140 | 1.43 | 9.34% | 66.09% | 71.49% | 6.21% | 15.90% | 5.22% | 33.91% | 7.94% |
| Thrift | 234 | 0.66 | 5.51% | 91.15% | 33.33% | 4.21% | 17.04% | 3.49% | 8.85% | 5.33% |
| Tobacco | 12 | 0.71 | 5.77% | 91.88% | 97.55% | 6.21% | 20.25% | 4.95% | 8.12% | 5.71% |
| Toiletries/Cosmetics | 23 | 0.95 | 6.97% | 72.20% | 60.15% | 6.21% | 23.28% | 4.76% | 27.80% | 6.36% |
| Trucking | 33 | 1.17 | 8.05% | 44.09% | 41.45% | 4.71% | 33.19% | 3.15% | 55.91% | 5.31% |
| Utility (Foreign) | 5 | 1.23 | 8.34% | 61.42% | 30.34% | 4.21% | 15.01% | 3.58% | 38.58% | 6.50% |
| Water Utility | 16 | 0.86 | 6.51% | 54.71% | 37.51% | 4.21% | 35.46% | 2.72% | 45.29% | 4.79% |
| Wireless Networking | 57 | 1.54 | 9.90% | 73.33% | 63.40% | 6.21% | 14.08% | 5.34% | 26.67% | 8.68% |
| Public/Private Equity | 10 | 2.08 | 12.63% | 20.36% | 50.12% | 5.21% | 6.70% | 4.86% | 79.64% | 6.44% |
| Funeral Services | 6 | 1.41 | 9.24% | 59.79% | 29.77% | 3.71% | 33.26% | 2.48% | 40.21% | 6.52% |
| Total Market | 6870 | 1.19 | 8.15% | 67.20% | 64.10% | 6.21% | 16.67% | 5.17% | 32.80% | 7.18% |