Cost of Capital by Sector (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2017

Download as an excel file instead: http://www.stern.nyu.edu/~adamodar/pc/datasets/wacc.xls

For global datasets: http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html

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 41 1.36 10.21% 62.53% 71.03% 4.05% 5.10% 2.43% 37.47% 7.29%
Aerospace/Defense 96 1.07 8.56% 81.18% 46.90% 3.70% 10.86% 2.22% 18.82% 7.37%
Air Transport 18 1.12 8.83% 61.10% 51.95% 4.05% 22.99% 2.43% 38.90% 6.34%
Apparel 58 0.88 7.46% 75.96% 60.62% 4.05% 10.95% 2.43% 24.04% 6.25%
Auto & Truck 15 0.85 7.26% 39.98% 33.71% 3.50% 8.14% 2.10% 60.02% 4.16%
Auto Parts 63 1.12 8.84% 74.21% 55.06% 4.05% 10.40% 2.43% 25.79% 7.19%
Banks (Money Center) 10 0.86 7.34% 34.80% 32.77% 3.50% 27.90% 2.10% 65.20% 3.93%
Banks (Regional) 645 0.47 5.14% 62.51% 28.93% 3.50% 25.43% 2.10% 37.49% 4.00%
Beverage (Alcoholic) 25 0.79 6.96% 77.59% 58.51% 4.05% 10.86% 2.43% 22.41% 5.95%
Beverage (Soft) 36 0.91 7.64% 80.40% 54.55% 4.05% 5.87% 2.43% 19.60% 6.62%
Broadcasting 30 1.22 9.39% 51.36% 47.22% 3.70% 18.54% 2.22% 48.64% 5.90%
Brokerage & Investment Banking 45 1.08 8.58% 30.17% 48.05% 3.70% 13.59% 2.22% 69.83% 4.14%
Building Materials 41 1.01 8.18% 78.97% 44.27% 3.70% 23.39% 2.22% 21.03% 6.93%
Business & Consumer Services 165 1.07 8.54% 74.58% 50.13% 4.05% 12.61% 2.43% 25.42% 6.99%
Cable TV 14 1.12 8.80% 67.12% 41.58% 3.70% 20.28% 2.22% 32.88% 6.64%
Chemical (Basic) 45 1.00 8.15% 63.50% 54.20% 4.05% 7.71% 2.43% 36.50% 6.07%
Chemical (Diversified) 8 1.52 11.09% 74.12% 40.56% 3.70% 6.59% 2.22% 25.88% 8.80%
Chemical (Specialty) 100 1.20 9.27% 77.16% 50.43% 4.05% 9.58% 2.43% 22.84% 7.71%
Coal & Related Energy 38 1.36 10.21% 42.03% 86.78% 5.20% 0.48% 3.12% 57.97% 6.10%
Computer Services 117 0.99 8.06% 78.29% 51.74% 4.05% 11.18% 2.43% 21.71% 6.83%
Computers/Peripherals 55 1.06 8.46% 83.82% 63.91% 4.05% 5.68% 2.43% 16.18% 7.48%
Construction Supplies 51 1.31 9.93% 70.32% 42.41% 3.70% 18.44% 2.22% 29.68% 7.64%
Diversified 24 0.76 6.80% 73.71% 27.37% 3.50% 11.55% 2.10% 26.29% 5.56%
Drugs (Biotechnology) 426 1.40 10.43% 83.86% 88.89% 5.20% 1.44% 3.12% 16.14% 9.25%
Drugs (Pharmaceutical) 164 1.02 8.23% 87.36% 77.30% 5.20% 2.54% 3.12% 12.64% 7.58%
Education 36 1.23 9.42% 76.95% 59.62% 4.05% 9.29% 2.43% 23.05% 7.81%
Electrical Equipment 119 1.14 8.96% 84.09% 71.04% 4.05% 5.87% 2.43% 15.91% 7.92%
Electronics (Consumer & Office) 24 1.08 8.61% 84.47% 63.42% 4.05% 3.81% 2.43% 15.53% 7.65%
Electronics (General) 164 0.86 7.37% 85.08% 59.34% 4.05% 8.85% 2.43% 14.92% 6.63%
Engineering/Construction 48 1.18 9.17% 76.31% 57.02% 4.05% 15.15% 2.43% 23.69% 7.57%
Entertainment 79 1.20 9.29% 76.93% 63.16% 4.05% 5.50% 2.43% 23.07% 7.71%
Environmental & Waste Services 89 0.85 7.30% 72.26% 65.51% 4.05% 5.07% 2.43% 27.74% 5.95%
Farming/Agriculture 37 0.92 7.68% 62.64% 48.69% 3.70% 7.89% 2.22% 37.36% 5.64%
Financial Svcs. (Non-bank & Insurance) 258 0.65 6.17% 8.17% 34.97% 3.50% 20.80% 2.10% 91.83% 2.43%
Food Processing 87 0.75 6.74% 78.97% 38.29% 3.50% 14.66% 2.10% 21.03% 5.76%
Food Wholesalers 16 1.20 9.30% 73.60% 54.49% 4.05% 11.77% 2.43% 26.40% 7.49%
Furn/Home Furnishings 30 0.84 7.20% 77.93% 44.49% 3.70% 14.58% 2.22% 22.07% 6.10%
Green & Renewable Energy 25 1.14 8.94% 36.89% 62.36% 4.05% 4.25% 2.43% 63.11% 4.83%
Healthcare Products 254 1.04 8.35% 84.89% 62.16% 4.05% 6.12% 2.43% 15.11% 7.45%
Healthcare Support Services 121 0.94 7.79% 75.90% 54.32% 4.05% 14.31% 2.43% 24.10% 6.50%
Heathcare Information and Technology 125 0.95 7.86% 83.07% 60.52% 4.05% 6.32% 2.43% 16.93% 6.94%
Homebuilding 33 1.08 8.58% 60.20% 41.71% 3.70% 27.28% 2.22% 39.80% 6.05%
Hospitals/Healthcare Facilities 38 1.10 8.70% 37.60% 36.49% 3.50% 12.06% 2.10% 62.40% 4.58%
Hotel/Gaming 69 0.96 7.92% 64.74% 46.75% 3.70% 11.23% 2.22% 35.26% 5.91%
Household Products 129 0.80 6.98% 82.69% 62.02% 4.05% 9.05% 2.43% 17.31% 6.19%
Information Services 64 0.98 8.03% 83.14% 40.74% 3.70% 16.37% 2.22% 16.86% 7.05%
Insurance (General) 19 0.90 7.60% 72.25% 33.57% 3.50% 18.33% 2.10% 27.75% 6.07%
Insurance (Life) 22 1.03 8.34% 58.45% 35.59% 3.50% 22.91% 2.10% 41.55% 5.74%
Insurance (Prop/Cas.) 50 0.83 7.17% 76.50% 32.93% 3.50% 22.27% 2.10% 23.50% 5.98%
Investments & Asset Management 156 0.90 7.55% 62.12% 37.84% 3.50% 7.71% 2.10% 37.88% 5.48%
Machinery 127 1.06 8.49% 82.31% 46.07% 3.70% 11.73% 2.22% 17.69% 7.39%
Metals & Mining 97 1.30 9.87% 65.90% 91.02% 6.20% 1.16% 3.72% 34.10% 7.77%
Office Equipment & Services 24 1.49 10.93% 65.23% 41.58% 3.70% 16.68% 2.22% 34.77% 7.90%
Oil/Gas (Integrated) 7 1.08 8.60% 85.69% 50.24% 4.05% 1.14% 2.43% 14.31% 7.72%
Oil/Gas (Production and Exploration) 330 1.38 10.29% 68.18% 80.22% 5.20% 0.32% 3.12% 31.82% 8.01%
Oil/Gas Distribution 78 1.20 9.25% 56.62% 47.82% 3.70% 2.93% 2.22% 43.38% 6.20%
Oilfield Svcs/Equip. 148 1.37 10.22% 75.75% 69.62% 4.05% 4.11% 2.43% 24.25% 8.33%
Packaging & Container 26 0.84 7.22% 64.27% 32.10% 3.50% 24.47% 2.10% 35.73% 5.39%
Paper/Forest Products 23 1.12 8.81% 67.26% 38.53% 3.50% 14.46% 2.10% 32.74% 6.62%
Power 68 0.54 5.55% 53.65% 29.31% 3.50% 19.27% 2.10% 46.35% 3.95%
Precious Metals 109 1.25 9.57% 80.61% 93.13% 6.20% 1.84% 3.72% 19.39% 8.44%
Publishing & Newspapers 37 1.32 9.96% 64.66% 51.60% 4.05% 14.32% 2.43% 35.34% 7.30%
R.E.I.T. 238 0.72 6.57% 56.09% 25.71% 3.50% 1.72% 2.10% 43.91% 4.61%
Real Estate (Development) 18 0.68 6.34% 62.76% 36.15% 3.50% 1.97% 2.10% 37.24% 4.76%
Real Estate (General/Diversified) 11 1.27 9.68% 80.54% 40.76% 3.70% 15.32% 2.22% 19.46% 8.23%
Real Estate (Operations & Services) 54 0.99 8.09% 57.16% 43.44% 3.70% 8.78% 2.22% 42.84% 5.58%
Recreation 66 0.92 7.69% 76.71% 45.47% 3.70% 13.21% 2.22% 23.29% 6.42%
Reinsurance 3 0.75 6.70% 75.74% 29.15% 3.50% 19.33% 2.10% 24.26% 5.59%
Restaurant/Dining 86 0.77 6.82% 75.79% 40.67% 3.70% 16.47% 2.22% 24.21% 5.71%
Retail (Automotive) 25 0.91 7.65% 63.90% 46.34% 3.70% 22.58% 2.22% 36.10% 5.69%
Retail (Building Supply) 6 1.30 9.84% 82.86% 50.34% 4.05% 20.11% 2.43% 17.14% 8.57%
Retail (Distributors) 88 1.10 8.74% 64.05% 52.36% 4.05% 16.95% 2.43% 35.95% 6.47%
Retail (General) 19 1.05 8.42% 73.25% 46.87% 3.70% 22.22% 2.22% 26.75% 6.76%
Retail (Grocery and Food) 14 0.69 6.38% 62.61% 51.57% 4.05% 24.11% 2.43% 37.39% 4.90%
Retail (Online) 57 1.23 9.43% 91.47% 50.54% 4.05% 8.46% 2.43% 8.53% 8.84%
Retail (Special Lines) 108 1.02 8.27% 68.48% 50.69% 4.05% 21.29% 2.43% 31.52% 6.43%
Rubber& Tires 4 1.35 10.11% 58.62% 38.00% 3.50% 10.09% 2.10% 41.38% 6.79%
Semiconductor 80 1.20 9.25% 87.73% 51.24% 4.05% 7.71% 2.43% 12.27% 8.41%
Semiconductor Equip 45 1.10 8.69% 86.00% 54.21% 4.05% 11.13% 2.43% 14.00% 7.82%
Shipbuilding & Marine 11 1.20 9.29% 67.75% 60.89% 4.05% 7.30% 2.43% 32.25% 7.08%
Shoe 10 0.85 7.30% 91.52% 39.02% 3.50% 14.47% 2.10% 8.48% 6.86%
Software (Entertainment) 13 0.98 8.03% 87.29% 54.18% 4.05% 1.04% 2.43% 12.71% 7.32%
Software (Internet) 297 1.13 8.90% 96.14% 64.71% 4.05% 3.49% 2.43% 3.86% 8.65%
Software (System & Application) 236 1.13 8.86% 82.48% 59.22% 4.05% 5.67% 2.43% 17.52% 7.73%
Steel 38 1.60 11.55% 67.77% 51.52% 4.05% 7.94% 2.43% 32.23% 8.61%
Telecom (Wireless) 17 1.12 8.80% 48.30% 45.11% 3.70% 9.11% 2.22% 51.70% 5.40%
Telecom. Equipment 107 0.99 8.08% 80.44% 57.78% 4.05% 6.14% 2.43% 19.56% 6.97%
Telecom. Services 67 1.04 8.38% 60.94% 52.25% 4.05% 13.36% 2.43% 39.06% 6.06%
Tobacco 22 1.28 9.73% 85.37% 48.90% 3.70% 8.84% 2.22% 14.63% 8.63%
Transportation 17 1.01 8.22% 76.96% 40.03% 3.70% 17.46% 2.22% 23.04% 6.84%
Transportation (Railroads) 7 0.79 6.92% 78.53% 31.20% 3.50% 22.17% 2.10% 21.47% 5.89%
Trucking 30 1.21 9.31% 52.72% 43.08% 3.70% 26.74% 2.22% 47.28% 5.96%
Utility (General) 18 0.38 4.59% 59.46% 24.61% 3.15% 25.62% 1.89% 40.54% 3.50%
Utility (Water) 22 0.65 6.14% 69.77% 25.03% 3.50% 11.97% 2.10% 30.23% 4.92%
Total Market 7330 1.00 8.15% 59.83% 36.78% 3.50% 10.44% 2.10% 40.17% 5.72%
Total Market (without financials) 6125 1.08 8.57% 74.12% 51.65% 4.05% 8.27% 2.43% 25.88% 6.98%

Last Updated in January 2017
By Aswath Damodaran