Cost of Equity and Capital (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2023

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
Advertising 58 1.63 13.57% 68.97% 52.72% 5.88% 6.39% 4.41% 31.03% 10.73%
Aerospace/Defense 77 1.41 12.28% 79.33% 37.56% 5.50% 8.60% 4.13% 20.67% 10.59%
Air Transport 21 1.42 12.29% 34.92% 37.73% 5.50% 10.47% 4.13% 65.08% 6.98%
Apparel 39 1.32 11.75% 65.98% 38.51% 5.50% 12.04% 4.13% 34.02% 9.15%
Auto & Truck 31 1.54 13.03% 66.58% 52.61% 5.88% 3.00% 4.41% 33.42% 10.15%
Auto Parts 37 1.47 12.64% 70.10% 39.52% 5.50% 9.30% 4.13% 29.90% 10.09%
Bank (Money Center) 7 1.08 10.30% 31.61% 19.59% 4.73% 16.25% 3.55% 68.39% 5.68%
Banks (Regional) 557 0.50 6.88% 60.75% 16.76% 4.73% 18.84% 3.55% 39.25% 5.57%
Beverage (Alcoholic) 23 1.01 9.90% 81.36% 49.87% 5.50% 9.39% 4.13% 18.64% 8.82%
Beverage (Soft) 31 1.30 11.62% 86.75% 41.72% 5.50% 6.42% 4.13% 13.25% 10.63%
Broadcasting 26 1.32 11.73% 40.51% 46.90% 5.50% 15.76% 4.13% 59.49% 7.21%
Brokerage & Investment Banking 30 1.20 11.04% 33.21% 28.00% 5.50% 15.32% 4.13% 66.79% 6.42%
Building Materials 45 1.28 11.47% 77.56% 29.19% 5.50% 16.71% 4.13% 22.44% 9.82%
Business & Consumer Services 164 1.17 10.84% 78.45% 45.78% 5.50% 9.43% 4.13% 21.55% 9.39%
Cable TV 10 1.26 11.34% 48.25% 25.41% 5.50% 21.95% 4.13% 51.75% 7.60%
Chemical (Basic) 38 1.25 11.29% 67.43% 46.58% 5.50% 9.83% 4.13% 32.57% 8.95%
Chemical (Diversified) 4 1.41 12.27% 63.19% 39.49% 5.50% 12.02% 4.13% 36.81% 9.27%
Chemical (Specialty) 76 1.28 11.47% 78.49% 42.32% 5.50% 10.75% 4.13% 21.51% 9.89%
Coal & Related Energy 19 1.45 12.51% 82.16% 61.96% 5.88% 2.28% 4.41% 17.84% 11.06%
Computer Services 80 1.17 10.84% 75.44% 47.78% 5.50% 6.47% 4.13% 24.56% 9.19%
Computers/Peripherals 42 1.29 11.55% 91.31% 48.73% 5.50% 9.13% 4.13% 8.69% 10.90%
Construction Supplies 49 1.26 11.39% 76.85% 35.11% 5.50% 10.52% 4.13% 23.15% 9.71%
Diversified 23 1.04 10.05% 82.48% 57.84% 5.88% 2.98% 4.41% 17.52% 9.06%
Drugs (Biotechnology) 598 1.24 11.26% 86.71% 58.41% 5.88% 0.94% 4.41% 13.29% 10.35%
Drugs (Pharmaceutical) 281 1.27 11.41% 88.02% 64.88% 5.88% 2.37% 4.41% 11.98% 10.57%
Education 33 1.10 10.42% 76.56% 41.81% 5.50% 7.10% 4.13% 23.44% 8.94%
Electrical Equipment 110 1.59 13.32% 81.62% 58.55% 5.88% 4.47% 4.41% 18.38% 11.68%
Electronics (Consumer & Office) 16 1.54 13.02% 85.87% 39.56% 5.50% 3.98% 4.13% 14.13% 11.76%
Electronics (General) 138 1.20 11.02% 84.16% 44.94% 5.50% 6.29% 4.13% 15.84% 9.92%
Engineering/Construction 43 1.20 10.99% 75.99% 35.17% 5.50% 13.30% 4.13% 24.01% 9.34%
Entertainment 110 1.45 12.49% 75.03% 57.81% 5.88% 3.45% 4.41% 24.97% 10.47%
Environmental & Waste Services 62 1.02 9.91% 79.66% 48.09% 5.50% 5.42% 4.13% 20.34% 8.73%
Farming/Agriculture 39 1.14 10.65% 74.70% 54.43% 5.88% 6.64% 4.41% 25.30% 9.07%
Financial Svcs. (Non-bank & Insurance) 223 0.89 9.14% 9.05% 27.15% 5.50% 14.61% 4.13% 90.95% 4.58%
Food Processing 92 0.92 9.33% 77.60% 34.23% 5.50% 7.74% 4.13% 22.40% 8.16%
Food Wholesalers 14 1.12 10.55% 68.42% 32.42% 5.50% 11.94% 4.13% 31.58% 8.52%
Furn/Home Furnishings 32 1.27 11.43% 64.13% 41.91% 5.50% 12.67% 4.13% 35.87% 8.81%
Green & Renewable Energy 19 1.60 13.39% 45.23% 67.60% 7.01% 6.73% 5.26% 54.77% 8.93%
Healthcare Products 254 1.16 10.78% 88.81% 50.94% 5.88% 3.70% 4.41% 11.19% 10.07%
Healthcare Support Services 131 1.16 10.77% 80.90% 47.79% 5.50% 6.74% 4.13% 19.10% 9.50%
Heathcare Information and Technology 138 1.47 12.62% 87.56% 53.87% 5.88% 4.30% 4.41% 12.44% 11.60%
Homebuilding 32 1.50 12.80% 75.57% 33.33% 5.50% 17.81% 4.13% 24.43% 10.68%
Hospitals/Healthcare Facilities 34 1.17 10.85% 53.41% 51.19% 5.88% 9.56% 4.41% 46.59% 7.85%
Hotel/Gaming 69 1.46 12.55% 60.03% 38.05% 5.50% 8.14% 4.13% 39.97% 9.18%
Household Products 127 1.16 10.74% 86.56% 56.83% 5.88% 6.73% 4.41% 13.44% 9.89%
Information Services 73 1.40 12.22% 88.45% 45.11% 5.50% 12.45% 4.13% 11.55% 11.29%
Insurance (General) 21 1.23 11.17% 76.63% 43.76% 5.50% 10.26% 4.13% 23.37% 9.53%
Insurance (Life) 27 0.94 9.46% 51.97% 28.89% 5.50% 11.41% 4.13% 48.03% 6.90%
Insurance (Prop/Cas.) 51 0.80 8.65% 82.33% 27.67% 5.50% 10.92% 4.13% 17.67% 7.85%
Investments & Asset Management 600 0.62 7.58% 72.28% 9.91% 4.73% 4.01% 3.55% 27.72% 6.47%
Machinery 116 1.22 11.16% 82.75% 32.36% 5.50% 10.37% 4.13% 17.25% 9.94%
Metals & Mining 68 1.29 11.54% 82.27% 70.06% 7.01% 4.15% 5.26% 17.73% 10.43%
Office Equipment & Services 16 1.18 10.87% 59.95% 35.22% 5.50% 19.53% 4.13% 40.05% 8.17%
Oil/Gas (Integrated) 4 0.98 9.69% 89.68% 30.55% 5.50% 14.22% 4.13% 10.32% 9.11%
Oil/Gas (Production and Exploration) 174 1.26 11.35% 83.28% 56.98% 5.88% 4.60% 4.41% 16.72% 10.19%
Oil/Gas Distribution 23 0.99 9.77% 58.34% 33.55% 5.50% 6.90% 4.13% 41.66% 7.42%
Oilfield Svcs/Equip. 101 1.38 12.05% 75.41% 46.90% 5.50% 7.07% 4.13% 24.59% 10.10%
Packaging & Container 25 0.95 9.54% 61.74% 24.43% 4.73% 14.66% 3.55% 38.26% 7.25%
Paper/Forest Products 7 1.38 12.10% 69.51% 42.84% 5.50% 12.76% 4.13% 30.49% 9.66%
Power 48 0.73 8.19% 56.45% 17.18% 4.73% 12.30% 3.55% 43.55% 6.17%
Precious Metals 74 1.23 11.21% 85.97% 72.54% 7.01% 2.87% 5.26% 14.03% 10.37%
Publishing & Newspapers 20 1.11 10.50% 70.34% 30.92% 5.50% 9.67% 4.13% 29.66% 8.61%
R.E.I.T. 223 1.06 10.20% 56.39% 21.54% 4.73% 3.38% 3.55% 43.61% 7.30%
Real Estate (Development) 18 1.52 12.89% 47.05% 51.25% 5.88% 6.66% 4.41% 52.95% 8.40%
Real Estate (General/Diversified) 12 0.79 8.57% 71.52% 28.66% 5.50% 9.37% 4.13% 28.48% 7.31%
Real Estate (Operations & Services) 60 1.35 11.87% 47.79% 44.43% 5.50% 5.47% 4.13% 52.21% 7.83%
Recreation 57 1.42 12.30% 65.76% 42.13% 5.50% 9.49% 4.13% 34.24% 9.50%
Reinsurance 1 0.83 8.81% 68.92% 19.37% 4.73% 6.48% 3.55% 31.08% 7.17%
Restaurant/Dining 70 1.41 12.26% 76.47% 41.15% 5.50% 8.54% 4.13% 23.53% 10.34%
Retail (Automotive) 30 1.52 12.91% 63.50% 35.71% 5.50% 15.84% 4.13% 36.50% 9.70%
Retail (Building Supply) 15 1.79 14.51% 82.50% 37.55% 5.50% 13.39% 4.13% 17.50% 12.69%
Retail (Distributors) 69 1.28 11.45% 71.65% 37.08% 5.50% 13.59% 4.13% 28.35% 9.38%
Retail (General) 15 1.36 11.98% 83.35% 31.53% 5.50% 21.26% 4.13% 16.65% 10.67%
Retail (Grocery and Food) 13 0.67 7.85% 60.31% 28.26% 5.50% 16.45% 4.13% 39.69% 6.37%
Retail (Online) 63 1.49 12.71% 83.91% 59.41% 5.88% 4.09% 4.41% 16.09% 11.38%
Retail (Special Lines) 78 1.48 12.64% 71.86% 38.59% 5.50% 15.02% 4.13% 28.14% 10.25%
Rubber& Tires 3 0.84 8.86% 23.24% 39.79% 5.50% 0.00% 4.13% 76.76% 5.22%
Semiconductor 68 1.61 13.43% 89.88% 38.40% 5.50% 8.18% 4.13% 10.12% 12.49%
Semiconductor Equip 30 1.76 14.32% 89.46% 41.57% 5.50% 10.94% 4.13% 10.54% 13.24%
Shipbuilding & Marine 8 0.94 9.49% 71.93% 41.16% 5.50% 6.23% 4.13% 28.07% 7.98%
Shoe 13 1.33 11.77% 91.73% 39.37% 5.50% 10.70% 4.13% 8.27% 11.13%
Software (Entertainment) 91 1.36 11.98% 95.42% 58.71% 5.88% 3.82% 4.41% 4.58% 11.63%
Software (Internet) 33 1.55 13.09% 84.99% 55.24% 5.88% 2.37% 4.41% 15.01% 11.79%
Software (System & Application) 390 1.47 12.61% 91.44% 52.11% 5.88% 3.40% 4.41% 8.56% 11.91%
Steel 28 1.34 11.85% 77.76% 38.30% 5.50% 14.95% 4.13% 22.24% 10.14%
Telecom (Wireless) 16 1.03 10.00% 60.55% 51.92% 5.88% 3.83% 4.41% 39.45% 7.80%
Telecom. Equipment 79 1.23 11.20% 89.54% 41.35% 5.50% 4.06% 4.13% 10.46% 10.46%
Telecom. Services 49 0.88 9.12% 45.93% 55.37% 5.88% 6.54% 4.41% 54.07% 6.57%
Tobacco 15 2.00 15.76% 80.61% 44.06% 5.50% 9.83% 4.13% 19.39% 13.51%
Transportation 18 1.06 10.17% 77.21% 28.05% 5.50% 16.39% 4.13% 22.79% 8.79%
Transportation (Railroads) 4 1.11 10.46% 78.46% 16.34% 4.73% 16.57% 3.55% 21.54% 8.97%
Trucking 35 1.55 13.06% 69.49% 41.17% 5.50% 14.79% 4.13% 30.51% 10.33%
Utility (General) 15 0.64 7.65% 57.41% 14.97% 4.73% 13.20% 3.55% 42.59% 5.90%
Utility (Water) 16 1.15 10.73% 69.74% 27.96% 5.50% 8.45% 4.13% 30.26% 8.73%
Total Market 7165 1.16 10.75% 65.14% 41.37% 5.50% 7.52% 4.13% 34.86% 8.44%
Total Market (without financials) 5649 1.29 11.56% 79.11% 47.98% 5.50% 6.38% 4.13% 20.89% 10.01%

Last Updated in January 2023
By Aswath Damodaran