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% 61.36% 72.80% 4.05% 5.10% 2.43% 38.64% 7.20%
Aerospace/Defense 96 1.07 8.56% 80.95% 40.75% 3.70% 10.86% 2.22% 19.05% 7.36%
Air Transport 18 1.12 8.83% 58.78% 38.61% 3.50% 22.99% 2.10% 41.22% 6.06%
Apparel 58 0.88 7.46% 74.51% 47.15% 3.70% 10.95% 2.22% 25.49% 6.12%
Auto & Truck 15 0.85 7.26% 39.93% 29.21% 3.50% 8.14% 2.10% 60.07% 4.16%
Auto Parts 63 1.12 8.84% 73.95% 50.64% 3.70% 10.40% 2.22% 26.05% 7.11%
Bank (Money Center) 10 0.86 7.34% 34.72% 25.85% 3.50% 27.90% 2.10% 65.28% 3.92%
Banks (Regional) 645 0.47 5.14% 62.30% 22.84% 3.05% 25.43% 1.83% 37.70% 3.89%
Beverage (Alcoholic) 25 0.79 6.96% 77.51% 44.18% 3.70% 10.86% 2.22% 22.49% 5.89%
Beverage (Soft) 36 0.91 7.64% 80.31% 52.80% 3.70% 5.87% 2.22% 19.69% 6.57%
Broadcasting 30 1.22 9.39% 51.04% 41.01% 3.70% 18.54% 2.22% 48.96% 5.88%
Brokerage & Investment Banking 45 1.08 8.58% 30.10% 44.96% 3.70% 13.59% 2.22% 69.90% 4.13%
Building Materials 41 1.01 8.18% 78.75% 33.77% 3.50% 23.39% 2.10% 21.25% 6.89%
Business & Consumer Services 165 1.07 8.54% 74.02% 44.71% 3.70% 12.61% 2.22% 25.98% 6.90%
Cable TV 14 1.12 8.80% 67.01% 30.78% 3.50% 20.28% 2.10% 32.99% 6.59%
Chemical (Basic) 45 1.00 8.15% 63.05% 59.91% 3.70% 7.71% 2.22% 36.95% 5.96%
Chemical (Diversified) 8 1.52 11.09% 73.79% 45.48% 3.70% 6.59% 2.22% 26.21% 8.77%
Chemical (Specialty) 100 1.20 9.27% 76.94% 45.44% 3.70% 9.58% 2.22% 23.06% 7.64%
Coal & Related Energy 38 1.36 10.21% 41.92% 73.31% 4.05% 0.48% 2.43% 58.08% 5.69%
Computer Services 117 0.99 8.06% 77.92% 45.57% 3.70% 11.18% 2.22% 22.08% 6.77%
Computers/Peripherals 55 1.06 8.46% 83.61% 60.29% 3.70% 5.68% 2.22% 16.39% 7.43%
Construction Supplies 51 1.31 9.93% 70.14% 38.87% 3.50% 18.44% 2.10% 29.86% 7.59%
Diversified 24 0.76 6.80% 73.54% 23.28% 3.05% 11.55% 1.83% 26.46% 5.49%
Drugs (Biotechnology) 426 1.40 10.43% 83.72% 75.23% 5.20% 1.44% 3.12% 16.28% 9.24%
Drugs (Pharmaceutical) 164 1.02 8.23% 87.28% 67.61% 4.05% 2.54% 2.43% 12.72% 7.49%
Education 36 1.23 9.42% 74.97% 51.51% 3.70% 9.29% 2.22% 25.03% 7.62%
Electrical Equipment 119 1.14 8.96% 83.93% 54.63% 3.70% 5.87% 2.22% 16.07% 7.87%
Electronics (Consumer & Office) 24 1.08 8.61% 83.76% 66.94% 4.05% 3.81% 2.43% 16.24% 7.61%
Electronics (General) 164 0.86 7.37% 84.84% 48.91% 3.70% 8.85% 2.22% 15.16% 6.59%
Engineering/Construction 48 1.18 9.17% 75.50% 44.23% 3.70% 15.15% 2.22% 24.50% 7.47%
Entertainment 79 1.20 9.29% 76.44% 44.71% 3.70% 5.50% 2.22% 23.56% 7.63%
Environmental & Waste Services 89 0.85 7.30% 71.95% 57.94% 3.70% 5.07% 2.22% 28.05% 5.87%
Farming/Agriculture 37 0.92 7.68% 62.49% 41.14% 3.70% 7.89% 2.22% 37.51% 5.63%
Financial Svcs. (Non-bank & Insurance) 258 0.65 6.17% 8.17% 29.20% 3.50% 20.80% 2.10% 91.83% 2.43%
Food Processing 87 0.75 6.74% 78.84% 30.98% 3.50% 14.66% 2.10% 21.16% 5.76%
Food Wholesalers 16 1.20 9.30% 73.35% 52.66% 3.70% 11.77% 2.22% 26.65% 7.41%
Furn/Home Furnishings 30 0.84 7.20% 77.51% 42.94% 3.70% 14.58% 2.22% 22.49% 6.08%
Green & Renewable Energy 25 1.14 8.94% 36.45% 47.60% 3.70% 4.25% 2.22% 63.55% 4.67%
Healthcare Products 254 1.04 8.35% 84.78% 56.59% 3.70% 6.12% 2.22% 15.22% 7.41%
Healthcare Support Services 121 0.94 7.79% 75.66% 50.06% 3.70% 14.31% 2.22% 24.34% 6.44%
Heathcare Information and Technology 125 0.95 7.86% 82.85% 52.46% 3.70% 6.32% 2.22% 17.15% 6.89%
Homebuilding 33 1.08 8.58% 60.14% 33.76% 3.50% 27.28% 2.10% 39.86% 6.00%
Hospitals/Healthcare Facilities 38 1.10 8.70% 36.93% 44.67% 3.70% 12.06% 2.22% 63.07% 4.61%
Hotel/Gaming 69 0.96 7.92% 64.40% 39.32% 3.50% 11.23% 2.10% 35.60% 5.85%
Household Products 129 0.80 6.98% 82.51% 50.91% 3.70% 9.05% 2.22% 17.49% 6.15%
Information Services 64 0.98 8.03% 83.02% 36.65% 3.50% 16.37% 2.10% 16.98% 7.03%
Insurance (General) 19 0.90 7.60% 71.97% 30.38% 3.50% 18.33% 2.10% 28.03% 6.06%
Insurance (Life) 22 1.03 8.34% 58.34% 27.80% 3.50% 22.91% 2.10% 41.66% 5.74%
Insurance (Prop/Cas.) 50 0.83 7.17% 76.27% 25.41% 3.50% 22.27% 2.10% 23.73% 5.97%
Investments & Asset Management 156 0.90 7.55% 61.89% 34.30% 3.50% 7.71% 2.10% 38.11% 5.47%
Machinery 127 1.06 8.49% 82.17% 38.59% 3.50% 11.73% 2.10% 17.83% 7.35%
Metals & Mining 97 1.30 9.87% 65.80% 77.36% 5.20% 1.16% 3.12% 34.20% 7.56%
Office Equipment & Services 24 1.49 10.93% 64.80% 33.85% 3.50% 16.68% 2.10% 35.20% 7.82%
Oil/Gas (Integrated) 7 1.08 8.60% 85.54% 46.30% 3.70% 1.14% 2.22% 14.46% 7.68%
Oil/Gas (Production and Exploration) 330 1.38 10.29% 68.03% 75.08% 5.20% 0.32% 3.12% 31.97% 8.00%
Oil/Gas Distribution 78 1.20 9.25% 56.48% 45.13% 3.70% 2.93% 2.22% 43.52% 6.19%
Oilfield Svcs/Equip. 148 1.37 10.22% 75.38% 60.50% 3.70% 4.11% 2.22% 24.62% 8.25%
Packaging & Container 26 0.84 7.22% 64.09% 29.58% 3.50% 24.47% 2.10% 35.91% 5.38%
Paper/Forest Products 23 1.12 8.81% 66.96% 38.67% 3.50% 14.46% 2.10% 33.04% 6.60%
Power 68 0.54 5.55% 53.39% 24.11% 3.05% 19.27% 1.83% 46.61% 3.81%
Precious Metals 109 1.25 9.57% 80.58% 78.31% 5.20% 1.84% 3.12% 19.42% 8.32%
Publishing & Newspapers 37 1.32 9.96% 63.72% 48.08% 3.70% 14.32% 2.22% 36.28% 7.15%
R.E.I.T. 238 0.72 6.57% 55.72% 24.67% 3.05% 1.72% 1.83% 44.28% 4.47%
Real Estate (Development) 18 0.68 6.34% 62.30% 39.45% 3.50% 1.97% 2.10% 37.70% 4.74%
Real Estate (General/Diversified) 11 1.27 9.68% 80.43% 24.99% 3.05% 15.32% 1.83% 19.57% 8.14%
Real Estate (Operations & Services) 54 0.99 8.09% 56.60% 50.15% 3.70% 8.78% 2.22% 43.40% 5.54%
Recreation 66 0.92 7.69% 76.27% 46.01% 3.70% 13.21% 2.22% 23.73% 6.39%
Reinsurance 3 0.75 6.70% 75.54% 21.23% 3.05% 19.33% 1.83% 24.46% 5.51%
Restaurant/Dining 86 0.77 6.82% 74.07% 39.10% 3.50% 16.47% 2.10% 25.93% 5.60%
Retail (Automotive) 25 0.91 7.65% 62.54% 28.30% 3.50% 22.58% 2.10% 37.46% 5.57%
Retail (Building Supply) 6 1.30 9.84% 82.06% 39.62% 3.50% 20.11% 2.10% 17.94% 8.45%
Retail (Distributors) 88 1.10 8.74% 63.71% 40.48% 3.70% 16.95% 2.22% 36.29% 6.37%
Retail (General) 19 1.05 8.42% 71.65% 40.00% 3.70% 22.22% 2.22% 28.35% 6.66%
Retail (Grocery and Food) 14 0.69 6.38% 59.93% 35.13% 3.50% 24.11% 2.10% 40.07% 4.66%
Retail (Online) 57 1.23 9.43% 91.22% 48.86% 3.70% 8.46% 2.22% 8.78% 8.80%
Retail (Special Lines) 108 1.02 8.27% 65.73% 42.19% 3.70% 21.29% 2.22% 34.27% 6.20%
Rubber& Tires 4 1.35 10.11% 58.02% 63.88% 3.70% 10.09% 2.22% 41.98% 6.80%
Semiconductor 80 1.20 9.25% 87.65% 42.08% 3.70% 7.71% 2.22% 12.35% 8.38%
Semiconductor Equip 45 1.10 8.69% 85.95% 38.24% 3.50% 11.13% 2.10% 14.05% 7.77%
Shipbuilding & Marine 11 1.20 9.29% 67.38% 73.54% 4.05% 7.30% 2.43% 32.62% 7.05%
Shoe 10 0.85 7.30% 90.70% 37.21% 3.50% 14.47% 2.10% 9.30% 6.81%
Software (Entertainment) 13 0.98 8.03% 87.15% 48.14% 3.70% 1.04% 2.22% 12.85% 7.28%
Software (Internet) 297 1.13 8.90% 95.91% 55.85% 3.70% 3.49% 2.22% 4.09% 8.63%
Software (System & Application) 236 1.13 8.86% 82.30% 47.40% 3.70% 5.67% 2.22% 17.70% 7.68%
Steel 38 1.60 11.55% 67.60% 54.19% 3.70% 7.94% 2.22% 32.40% 8.53%
Telecom (Wireless) 17 1.12 8.80% 46.60% 37.67% 3.50% 9.11% 2.10% 53.40% 5.22%
Telecom. Equipment 107 0.99 8.08% 80.29% 49.24% 3.70% 6.14% 2.22% 19.71% 6.92%
Telecom. Services 67 1.04 8.38% 60.28% 47.21% 3.70% 13.36% 2.22% 39.72% 5.93%
Tobacco 22 1.28 9.73% 85.34% 61.73% 3.70% 8.84% 2.22% 14.66% 8.63%
Transportation 17 1.01 8.22% 75.77% 32.72% 3.50% 17.46% 2.10% 24.23% 6.74%
Transportation (Railroads) 7 0.79 6.92% 78.16% 27.05% 3.50% 22.17% 2.10% 21.84% 5.87%
Trucking 30 1.21 9.31% 52.41% 42.01% 3.70% 26.74% 2.22% 47.59% 5.93%
Utility (General) 18 0.38 4.59% 59.39% 19.32% 3.05% 25.62% 1.83% 40.61% 3.47%
Utility (Water) 22 0.65 6.14% 69.70% 27.03% 3.50% 11.97% 2.10% 30.30% 4.92%
Total Market 7330 1.00 8.15% 59.56% 45.04% 3.70% 10.44% 2.22% 40.44% 5.75%
Total Market (without financials) 6100 1.08 8.59% 73.69% 48.81% 3.70% 8.31% 2.22% 26.31% 6.92%
Last Updated in January 2017
By Aswath Damodaran