Cost of Capital by Sector (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2016

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 44 1.08 8.74% 64.00% 71.03% 4.52% 3.90% 2.71% 36.00% 6.57%
Aerospace/Defense 92 1.33 10.25% 82.99% 46.90% 3.52% 13.51% 2.11% 17.01% 8.86%
Air Transport 20 1.27 9.88% 58.90% 51.95% 4.02% 18.34% 2.41% 41.10% 6.81%
Apparel 63 1.06 8.61% 78.21% 60.62% 4.02% 13.84% 2.41% 21.79% 7.26%
Auto & Truck 19 0.96 8.00% 43.85% 33.71% 3.52% 8.01% 2.11% 56.15% 4.70%
Auto Parts 65 1.29 9.98% 75.24% 55.06% 4.02% 9.64% 2.41% 24.76% 8.11%
Bank (Money Center) 9 1.11 8.93% 31.60% 32.77% 3.52% 25.82% 2.11% 68.40% 4.27%
Banks (Regional) 644 0.51 5.34% 55.99% 28.93% 3.52% 24.11% 2.11% 44.01% 3.92%
Beverage (Alcoholic) 22 0.94 7.90% 84.56% 58.51% 4.02% 11.28% 2.41% 15.44% 7.05%
Beverage (Soft) 43 1.15 9.19% 81.32% 54.55% 4.02% 5.97% 2.41% 18.68% 7.92%
Broadcasting 29 1.29 10.02% 51.35% 47.22% 3.52% 21.20% 2.11% 48.65% 6.17%
Brokerage & Investment Banking 42 1.35 10.36% 25.94% 48.05% 3.52% 18.15% 2.11% 74.06% 4.25%
Building Materials 39 1.18 9.33% 75.10% 44.27% 3.52% 22.43% 2.11% 24.90% 7.54%
Business & Consumer Services 159 1.19 9.40% 73.89% 50.13% 4.02% 13.76% 2.41% 26.11% 7.58%
Cable TV 19 1.23 9.66% 66.84% 41.58% 3.52% 17.19% 2.11% 33.16% 7.16%
Chemical (Basic) 42 1.17 9.28% 61.75% 54.20% 4.02% 8.24% 2.41% 38.25% 6.65%
Chemical (Diversified) 9 1.55 11.60% 72.32% 40.56% 3.52% 18.35% 2.11% 27.68% 8.97%
Chemical (Specialty) 104 1.25 9.75% 76.12% 50.43% 4.02% 8.45% 2.41% 23.88% 8.00%
Coal & Related Energy 38 1.49 11.19% 24.27% 86.78% 6.52% 0.95% 3.91% 75.73% 5.68%
Computer Services 118 1.17 9.30% 77.60% 51.74% 4.02% 12.84% 2.41% 22.40% 7.75%
Computers/Peripherals 64 1.33 10.24% 84.28% 63.91% 4.02% 5.48% 2.41% 15.72% 9.01%
Construction Supplies 52 1.65 12.17% 62.86% 42.41% 3.52% 17.00% 2.11% 37.14% 8.43%
Diversified 26 1.01 8.32% 64.22% 27.37% 3.52% 15.20% 2.11% 35.78% 6.10%
Drugs (Biotechnology) 411 1.28 9.96% 87.50% 88.89% 6.52% 1.80% 3.91% 12.50% 9.20%
Drugs (Pharmaceutical) 157 1.02 8.37% 88.49% 77.30% 4.52% 3.90% 2.71% 11.51% 7.72%
Education 40 1.05 8.59% 68.38% 59.62% 4.02% 12.05% 2.41% 31.62% 6.63%
Electrical Equipment 120 1.15 9.17% 82.03% 71.04% 4.52% 6.58% 2.71% 17.97% 8.01%
Electronics (Consumer & Office) 25 1.23 9.65% 87.10% 63.42% 4.02% 9.71% 2.41% 12.90% 8.72%
Electronics (General) 167 1.03 8.42% 83.48% 59.34% 4.02% 9.47% 2.41% 16.52% 7.43%
Engineering/Construction 51 1.32 10.17% 70.47% 57.02% 4.02% 11.63% 2.41% 29.53% 7.88%
Entertainment 84 1.21 9.55% 76.96% 63.16% 4.02% 3.25% 2.41% 23.04% 7.90%
Environmental & Waste Services 97 1.10 8.90% 72.04% 65.51% 4.52% 7.49% 2.71% 27.96% 7.17%
Farming/Agriculture 37 1.25 9.77% 56.91% 48.69% 3.52% 9.28% 2.11% 43.09% 6.47%
Financial Svcs. (Non-bank & Insurance) 272 0.65 6.16% 6.95% 34.97% 3.52% 18.75% 2.11% 93.05% 2.39%
Food Processing 89 0.89 7.59% 79.26% 38.29% 3.52% 14.09% 2.11% 20.74% 6.45%
Food Wholesalers 14 0.73 6.65% 80.02% 54.49% 4.02% 15.85% 2.41% 19.98% 5.80%
Furn/Home Furnishings 30 1.23 9.65% 76.37% 44.49% 3.52% 15.53% 2.11% 23.63% 7.87%
Green & Renewable Energy 28 1.62 12.01% 42.93% 62.36% 4.02% 0.77% 2.41% 57.07% 6.53%
Healthcare Products 254 1.03 8.43% 83.68% 62.16% 4.02% 6.42% 2.41% 16.32% 7.45%
Healthcare Support Services 127 1.05 8.57% 77.75% 54.32% 4.02% 13.84% 2.41% 22.25% 7.20%
Heathcare Information and Technology 126 1.11 8.93% 84.96% 60.52% 4.02% 6.96% 2.41% 15.04% 7.95%
Homebuilding 34 1.12 9.00% 62.16% 41.71% 3.52% 21.79% 2.11% 37.84% 6.40%
Hospitals/Healthcare Facilities 58 0.82 7.19% 50.39% 36.49% 3.52% 10.41% 2.11% 49.61% 4.67%
Hotel/Gaming 73 0.97 8.10% 64.34% 46.75% 3.52% 11.34% 2.11% 35.66% 5.96%
Household Products 134 1.05 8.55% 83.32% 62.02% 4.02% 8.86% 2.41% 16.68% 7.53%
Information Services 70 1.00 8.27% 86.56% 40.74% 3.52% 16.46% 2.11% 13.44% 7.44%
Insurance (General) 20 1.04 8.52% 70.05% 33.57% 3.52% 21.73% 2.11% 29.95% 6.60%
Insurance (Life) 25 1.28 9.97% 55.84% 35.59% 3.52% 20.29% 2.11% 44.16% 6.50%
Insurance (Prop/Cas.) 53 0.90 7.65% 76.11% 32.93% 3.52% 21.85% 2.11% 23.89% 6.32%
Investments & Asset Management 145 1.17 9.31% 56.70% 37.84% 3.52% 7.90% 2.11% 43.30% 6.19%
Machinery 130 1.44 10.88% 78.39% 46.07% 3.52% 15.24% 2.11% 21.61% 8.99%
Metals & Mining 114 1.55 11.60% 53.83% 91.02% 7.77% 1.42% 4.66% 46.17% 8.40%
Office Equipment & Services 24 1.82 13.16% 62.28% 41.58% 3.52% 19.14% 2.11% 37.72% 8.99%
Oil/Gas (Integrated) 7 1.54 11.49% 85.84% 50.24% 4.02% 8.14% 2.41% 14.16% 10.20%
Oil/Gas (Production and Exploration) 351 1.63 12.05% 54.80% 80.22% 6.52% 2.91% 3.91% 45.20% 8.37%
Oil/Gas Distribution 79 1.22 9.61% 51.45% 47.82% 3.52% 5.60% 2.11% 48.55% 5.97%
Oilfield Svcs/Equip. 143 1.74 12.72% 71.90% 69.62% 4.52% 9.56% 2.71% 28.10% 9.91%
Packaging & Container 25 1.26 9.85% 64.63% 32.10% 3.52% 21.41% 2.11% 35.37% 7.12%
Paper/Forest Products 20 1.52 11.37% 52.89% 38.53% 3.52% 15.88% 2.11% 47.11% 7.01%
Power 73 0.80 7.05% 54.51% 29.31% 3.52% 23.38% 2.11% 45.49% 4.81%
Precious Metals 113 1.29 10.03% 66.65% 93.13% 7.77% 1.60% 4.66% 33.35% 8.24%
Publshing & Newspapers 39 1.45 10.95% 66.86% 51.60% 4.02% 13.67% 2.41% 33.14% 8.12%
R.E.I.T. 221 0.76 6.86% 52.68% 25.71% 3.52% 2.17% 2.11% 47.32% 4.61%
Real Estate (Development) 21 1.41 10.71% 61.39% 36.15% 3.52% 1.06% 2.11% 38.61% 7.39%
Real Estate (General/Diversified) 12 1.22 9.57% 79.70% 40.76% 3.52% 9.64% 2.11% 20.30% 8.05%
Real Estate (Operations & Services) 55 1.50 11.24% 60.78% 43.44% 3.52% 11.19% 2.11% 39.22% 7.66%
Recreation 65 0.91 7.76% 75.98% 45.47% 3.52% 11.33% 2.11% 24.02% 6.40%
Reinsurance 3 1.03 8.44% 71.70% 29.15% 3.52% 20.37% 2.11% 28.30% 6.65%
Restaurant/Dining 83 0.76 6.83% 79.46% 40.67% 3.52% 18.54% 2.11% 20.54% 5.86%
Retail (Automotive) 26 1.06 8.63% 65.29% 46.34% 3.52% 21.18% 2.11% 34.71% 6.37%
Retail (Building Supply) 5 1.47 11.10% 84.22% 50.34% 4.02% 23.18% 2.41% 15.78% 9.73%
Retail (Distributors) 83 1.22 9.60% 62.37% 52.36% 4.02% 16.42% 2.41% 37.63% 6.89%
Retail (General) 19 1.16 9.24% 71.69% 46.87% 3.52% 24.75% 2.11% 28.31% 7.22%
Retail (Grocery and Food) 17 1.04 8.50% 68.08% 51.57% 4.02% 23.56% 2.41% 31.92% 6.56%
Retail (Online) 39 1.58 11.72% 92.17% 50.54% 4.02% 11.14% 2.41% 7.83% 10.99%
Retail (Special Lines) 124 1.07 8.71% 68.17% 50.69% 4.02% 19.95% 2.41% 31.83% 6.71%
Rubber& Tires 4 1.66 12.23% 60.51% 38.00% 3.52% 9.60% 2.11% 39.49% 8.23%
Semiconductor 87 1.39 10.59% 88.83% 51.24% 4.02% 9.51% 2.41% 11.17% 9.68%
Semiconductor Equip 46 1.40 10.66% 72.69% 54.21% 4.02% 11.25% 2.41% 27.31% 8.41%
Shipbuilding & Marine 11 1.24 9.72% 63.72% 60.89% 4.02% 11.82% 2.41% 36.28% 7.07%
Shoe 11 0.82 7.20% 93.64% 39.02% 3.52% 18.12% 2.11% 6.36% 6.87%
Software (Entertainment) 17 1.42 10.77% 90.72% 54.18% 4.02% 1.56% 2.41% 9.28% 10.00%
Software (Internet) 308 1.34 10.30% 95.76% 64.71% 4.02% 3.80% 2.41% 4.24% 9.97%
Software (System & Application) 241 1.33 10.23% 89.14% 59.22% 4.02% 6.34% 2.41% 10.86% 9.39%
Steel 36 1.43 10.83% 52.15% 51.52% 4.02% 11.49% 2.41% 47.85% 6.80%
Telecom (Wireless) 19 1.48 11.13% 39.91% 45.11% 3.52% 9.38% 2.11% 60.09% 5.71%
Telecom. Equipment 121 1.29 10.02% 82.84% 57.78% 4.02% 8.86% 2.41% 17.16% 8.71%
Telecom. Services 65 0.95 7.94% 56.15% 52.25% 4.02% 11.89% 2.41% 43.85% 5.52%
Tobacco 20 1.91 13.75% 83.45% 48.90% 3.52% 11.64% 2.11% 16.55% 11.82%
Transportation 21 1.41 10.74% 76.27% 40.03% 3.52% 18.82% 2.11% 23.73% 8.69%
Transportation (Railroads) 12 1.15 9.18% 76.63% 31.20% 3.52% 15.11% 2.11% 23.37% 7.53%
Trucking 26 1.69 12.40% 49.70% 43.08% 3.52% 31.25% 2.11% 50.30% 7.22%
Unclassified 3 0.23 3.65% 49.90% 24.61% 3.02% 0.00% 1.81% 50.10% 2.73%
Utility (General) 20 0.55 5.57% 58.65% 25.03% 3.52% 26.58% 2.11% 41.35% 4.14%
Utility (Water) 18 0.47 5.07% 67.12% 36.78% 3.52% 14.60% 2.11% 32.88% 4.10%
Total Market 7480 1.13 9.06% 58.31% 51.65% 4.02% 10.95% 2.41% 41.69% 6.29%


Last Updated in January 2016
By Aswath Damodaran