Cost of Equity and Capital (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2024

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

For global datasets: https://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 Cost of Capital (Local Currency)
Advertising 57 1.37 10.19% 74.76% 56.41% 5.35% 5.44% 4.01% 25.24% 8.63% 8.63%
Aerospace/Defense 70 1.08 8.83% 79.71% 36.40% 5.09% 7.28% 3.81% 20.29% 7.81% 7.81%
Air Transport 25 1.27 9.71% 38.15% 44.65% 5.09% 8.62% 3.81% 61.85% 6.06% 6.06%
Apparel 38 1.19 9.38% 67.22% 37.04% 5.09% 10.19% 3.81% 32.78% 7.55% 7.55%
Auto & Truck 34 1.52 10.88% 76.32% 59.70% 5.35% 3.12% 4.01% 23.68% 9.26% 9.26%
Auto Parts 39 1.34 10.06% 72.23% 37.07% 5.09% 14.62% 3.81% 27.77% 8.33% 8.33%
Bank (Money Center) 15 1.06 8.76% 31.63% 22.51% 4.50% 17.69% 3.38% 68.37% 5.08% 5.08%
Banks (Regional) 625 0.46 6.00% 49.52% 18.68% 4.50% 17.69% 3.38% 50.48% 4.68% 4.68%
Beverage (Alcoholic) 19 1.13 9.09% 80.34% 49.70% 5.09% 10.42% 3.81% 19.66% 8.05% 8.05%
Beverage (Soft) 29 0.76 7.40% 85.38% 42.96% 5.09% 6.68% 3.81% 14.62% 6.87% 6.87%
Broadcasting 22 1.06 8.76% 36.18% 38.46% 5.09% 7.85% 3.81% 63.82% 5.60% 5.60%
Brokerage & Investment Banking 27 1.12 9.03% 30.67% 25.21% 5.09% 16.84% 3.81% 69.33% 5.41% 5.41%
Building Materials 44 1.32 9.94% 84.64% 28.72% 5.09% 19.94% 3.81% 15.36% 9.00% 9.00%
Business & Consumer Services 162 1.02 8.58% 84.79% 41.29% 5.09% 10.84% 3.81% 15.21% 7.86% 7.86%
Cable TV 10 1.28 9.75% 49.57% 33.01% 5.09% 23.72% 3.81% 50.43% 6.76% 6.76%
Chemical (Basic) 32 1.10 8.92% 68.65% 38.92% 5.09% 8.93% 3.81% 31.35% 7.32% 7.32%
Chemical (Diversified) 4 1.13 9.09% 58.99% 37.24% 5.09% 14.89% 3.81% 41.01% 6.93% 6.93%
Chemical (Specialty) 68 1.09 8.88% 78.85% 36.60% 5.09% 10.40% 3.81% 21.15% 7.81% 7.81%
Coal & Related Energy 18 1.27 9.73% 81.60% 55.69% 5.35% 2.62% 4.01% 18.40% 8.67% 8.67%
Computer Services 72 1.00 8.47% 77.43% 49.61% 5.09% 7.78% 3.81% 22.57% 7.42% 7.42%
Computers/Peripherals 36 1.13 9.09% 94.26% 38.90% 5.09% 8.67% 3.81% 5.74% 8.79% 8.79%
Construction Supplies 45 1.13 9.07% 80.19% 37.83% 5.09% 14.91% 3.81% 19.81% 8.03% 8.03%
Diversified 23 1.19 9.38% 83.93% 52.25% 5.35% 5.25% 4.01% 16.07% 8.51% 8.51%
Drugs (Biotechnology) 572 1.12 9.05% 85.92% 61.98% 5.35% 0.81% 4.01% 14.08% 8.34% 8.34%
Drugs (Pharmaceutical) 245 1.03 8.60% 86.17% 65.30% 6.09% 2.89% 4.57% 13.83% 8.05% 8.05%
Education 31 1.23 9.52% 83.62% 43.78% 5.09% 11.15% 3.81% 16.38% 8.58% 8.58%
Electrical Equipment 103 1.24 9.59% 82.38% 54.42% 5.35% 5.66% 4.01% 17.62% 8.61% 8.61%
Electronics (Consumer & Office) 13 1.30 9.84% 84.51% 39.42% 5.09% 7.31% 3.81% 15.49% 8.90% 8.90%
Electronics (General) 129 0.93 8.18% 85.33% 42.94% 5.09% 8.17% 3.81% 14.67% 7.54% 7.54%
Engineering/Construction 43 0.96 8.30% 79.24% 33.68% 5.09% 14.27% 3.81% 20.76% 7.37% 7.37%
Entertainment 98 0.99 8.45% 77.67% 61.19% 5.35% 3.25% 4.01% 22.33% 7.46% 7.46%
Environmental & Waste Services 57 0.91 8.05% 82.00% 46.07% 5.09% 5.42% 3.81% 18.00% 7.29% 7.29%
Farming/Agriculture 42 0.99 8.44% 68.82% 54.14% 5.35% 6.68% 4.01% 31.18% 7.06% 7.06%
Financial Svcs. (Non-bank & Insurance) 172 1.14 9.14% 22.02% 38.66% 5.09% 11.07% 3.81% 77.98% 4.99% 4.99%
Food Processing 82 0.61 6.67% 74.79% 36.51% 5.09% 8.29% 3.81% 25.21% 5.95% 5.95%
Food Wholesalers 14 0.97 8.32% 69.14% 27.30% 5.09% 15.90% 3.81% 30.86% 6.93% 6.93%
Furn/Home Furnishings 31 1.11 8.97% 67.77% 46.65% 5.09% 13.94% 3.81% 32.23% 7.31% 7.31%
Green & Renewable Energy 17 1.11 8.97% 41.42% 57.34% 5.35% 4.39% 4.01% 58.58% 6.07% 6.07%
Healthcare Products 230 1.06 8.77% 88.76% 52.21% 5.35% 4.81% 4.01% 11.24% 8.23% 8.23%
Healthcare Support Services 119 1.03 8.63% 78.82% 49.53% 5.09% 8.08% 3.81% 21.18% 7.61% 7.61%
Heathcare Information and Technology 128 1.27 9.74% 86.15% 54.15% 5.35% 3.11% 4.01% 13.85% 8.95% 8.95%
Homebuilding 32 1.37 10.18% 85.90% 32.31% 5.09% 17.22% 3.81% 14.10% 9.28% 9.28%
Hospitals/Healthcare Facilities 32 0.88 7.93% 55.63% 46.33% 5.09% 6.86% 3.81% 44.37% 6.10% 6.10%
Hotel/Gaming 68 1.34 10.06% 67.26% 40.80% 5.09% 8.63% 3.81% 32.74% 8.02% 8.02%
Household Products 93 0.84 7.76% 85.80% 51.12% 5.35% 8.21% 4.01% 14.20% 7.23% 7.23%
Information Services 18 0.93 8.16% 73.71% 33.83% 5.09% 15.79% 3.81% 26.29% 7.02% 7.02%
Insurance (General) 21 1.03 8.63% 79.41% 40.38% 5.09% 13.69% 3.81% 20.59% 7.64% 7.64%
Insurance (Life) 23 0.77 7.40% 52.02% 30.85% 5.09% 10.18% 3.81% 47.98% 5.68% 5.68%
Insurance (Prop/Cas.) 50 0.74 7.28% 83.76% 27.40% 5.09% 12.42% 3.81% 16.24% 6.72% 6.72%
Investments & Asset Management 334 0.46 5.98% 71.26% 15.15% 4.50% 11.33% 3.38% 28.74% 5.23% 5.23%
Machinery 103 1.03 8.60% 85.57% 33.44% 5.09% 11.73% 3.81% 14.43% 7.91% 7.91%
Metals & Mining 68 0.96 8.31% 86.34% 60.56% 5.35% 2.00% 4.01% 13.66% 7.72% 7.72%
Office Equipment & Services 17 1.14 9.12% 65.54% 30.28% 5.09% 17.12% 3.81% 34.46% 7.29% 7.29%
Oil/Gas (Integrated) 4 0.67 6.96% 88.89% 26.44% 5.09% 21.18% 3.81% 11.11% 6.61% 6.61%
Oil/Gas (Production and Exploration) 166 0.93 8.16% 81.12% 46.31% 5.09% 5.61% 3.81% 18.88% 7.34% 7.34%
Oil/Gas Distribution 24 0.79 7.52% 58.75% 32.55% 5.09% 9.25% 3.81% 41.25% 5.99% 5.99%
Oilfield Svcs/Equip. 100 0.98 8.39% 75.68% 43.73% 5.09% 10.88% 3.81% 24.32% 7.27% 7.27%
Packaging & Container 22 1.13 9.09% 62.01% 26.24% 5.09% 18.12% 3.81% 37.99% 7.09% 7.09%
Paper/Forest Products 7 1.94 12.80% 72.80% 43.04% 5.09% 12.91% 3.81% 27.20% 10.35% 10.35%
Power 50 0.65 6.87% 51.83% 20.39% 4.50% 13.69% 3.38% 48.17% 5.19% 5.19%
Precious Metals 61 0.87 7.88% 86.80% 63.61% 5.35% 1.98% 4.01% 13.20% 7.37% 7.37%
Publishing & Newspapers 21 0.96 8.30% 75.49% 38.20% 5.09% 10.01% 3.81% 24.51% 7.20% 7.20%
R.E.I.T. 193 1.03 8.63% 55.85% 23.72% 4.50% 1.95% 3.38% 44.15% 6.31% 6.31%
Real Estate (Development) 17 0.67 6.96% 51.52% 34.24% 5.09% 1.45% 3.81% 48.48% 5.43% 5.43%
Real Estate (General/Diversified) 11 0.56 6.47% 75.83% 35.91% 5.09% 13.21% 3.81% 24.17% 5.83% 5.83%
Real Estate (Operations & Services) 60 1.08 8.85% 69.17% 44.19% 5.09% 4.29% 3.81% 30.83% 7.30% 7.30%
Recreation 55 1.17 9.27% 63.06% 44.30% 5.09% 8.26% 3.81% 36.94% 7.25% 7.25%
Reinsurance 1 0.66 6.89% 70.16% 17.09% 4.50% 22.95% 3.38% 29.84% 5.84% 5.84%
Restaurant/Dining 64 1.19 9.38% 79.54% 35.37% 5.09% 11.41% 3.81% 20.46% 8.24% 8.24%
Retail (Automotive) 30 1.49 10.75% 63.49% 46.79% 5.09% 13.50% 3.81% 36.51% 8.22% 8.22%
Retail (Building Supply) 16 1.94 12.80% 83.39% 45.21% 5.09% 12.59% 3.81% 16.61% 11.30% 11.30%
Retail (Distributors) 62 1.11 8.97% 75.59% 37.74% 5.09% 15.76% 3.81% 24.41% 7.71% 7.71%
Retail (General) 26 1.25 9.61% 88.16% 38.28% 5.09% 14.58% 3.81% 11.84% 8.93% 8.93%
Retail (Grocery and Food) 14 0.49 6.15% 64.17% 25.65% 5.09% 16.88% 3.81% 35.83% 5.31% 5.31%
Retail (REITs) 28 1.12 9.04% 62.96% 20.72% 4.50% 2.53% 3.38% 37.04% 6.94% 6.94%
Retail (Special Lines) 105 1.18 9.31% 73.45% 44.01% 5.09% 9.53% 3.81% 26.55% 7.85% 7.85%
Rubber& Tires 3 0.67 6.98% 29.83% 40.77% 5.09% 0.00% 3.81% 70.17% 4.76% 4.76%
Semiconductor 63 1.50 10.76% 94.30% 41.47% 5.09% 4.89% 3.81% 5.70% 10.36% 10.36%
Semiconductor Equip 30 1.53 10.91% 92.78% 37.04% 5.09% 12.14% 3.81% 7.22% 10.40% 10.40%
Shipbuilding & Marine 8 0.81 7.61% 77.06% 45.07% 5.09% 6.74% 3.81% 22.94% 6.74% 6.74%
Shoe 13 1.29 9.82% 91.99% 36.28% 5.09% 11.31% 3.81% 8.01% 9.34% 9.34%
Software (Entertainment) 84 1.11 8.98% 96.94% 52.79% 5.35% 5.11% 4.01% 3.06% 8.83% 8.83%
Software (Internet) 35 1.62 11.31% 89.30% 65.22% 6.09% 2.61% 4.57% 10.70% 10.59% 10.59%
Software (System & Application) 351 1.29 9.83% 94.16% 52.09% 5.35% 4.19% 4.01% 5.84% 9.49% 9.49%
Steel 29 1.13 9.06% 83.21% 38.10% 5.09% 15.72% 3.81% 16.79% 8.18% 8.18%
Telecom (Wireless) 13 1.09 8.88% 60.92% 60.31% 5.35% 9.56% 4.01% 39.08% 6.98% 6.98%
Telecom. Equipment 66 1.08 8.85% 89.75% 46.62% 5.09% 6.20% 3.81% 10.25% 8.33% 8.33%
Telecom. Services 42 0.78 7.49% 44.46% 50.42% 5.35% 6.62% 4.01% 55.54% 5.56% 5.56%
Tobacco 16 1.22 9.51% 74.13% 48.00% 5.09% 9.95% 3.81% 25.87% 8.03% 8.03%
Transportation 36 1.26 9.67% 74.86% 53.12% 5.35% 6.53% 4.01% 25.14% 8.25% 8.25%
Transportation (Railroads) 4 1.02 8.56% 78.86% 22.28% 4.50% 17.28% 3.38% 21.14% 7.46% 7.46%
Trucking 22 1.15 9.16% 83.37% 28.33% 5.09% 20.21% 3.81% 16.63% 8.27% 8.27%
Utility (General) 14 0.58 6.55% 54.10% 14.93% 4.50% 14.05% 3.38% 45.90% 5.09% 5.09%
Utility (Water) 13 0.71 7.16% 66.27% 28.20% 5.09% 11.09% 3.81% 33.73% 6.03% 6.03%
Total Market 6481 1.00 8.48% 68.30% 42.03% 5.09% 8.35% 3.81% 31.70% 7.00% 7.00%
Total Market (without financials) 5214 1.10 8.93% 81.57% 47.00% 5.09% 6.80% 3.81% 18.43% 7.99% 7.99%

Last Updated in January 2024
By Aswath Damodaran