Cost of Capital
Posted on: Thursday, April 14th, 2022 | ID: #857


Cost of Capital

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 49 1.34 7.19% 66.02% 56.70% 3.58% 5.76% 2.61% 33.98% 5.64%
Aerospace/Defense 73 1.28 6.94% 77.25% 38.23% 3.16% 6.83% 2.31% 22.75% 5.89%
Air Transport 21 1.58 8.22% 39.47% 40.19% 3.58% 5.32% 2.61% 60.53% 4.83%
Apparel 39 1.23 6.71% 75.99% 43.49% 3.58% 12.06% 2.61% 24.01% 5.73%
Auto & Truck 26 1.13 6.30% 83.43% 54.78% 3.58% 3.88% 2.61% 16.57% 5.69%
Auto Parts 38 1.40 7.44% 75.94% 37.14% 3.16% 13.62% 2.31% 24.06% 6.20%
Bank (Money Center) 7 1.12 6.25% 36.98% 22.23% 2.50% 14.69% 1.83% 63.02% 3.46%
Banks (Regional) 563 0.70 4.47% 74.31% 19.68% 2.50% 19.29% 1.83% 25.69% 3.79%
Beverage (Alcoholic) 21 0.82 4.98% 82.36% 37.87% 3.16% 7.93% 2.31% 17.64% 4.51%
Beverage (Soft) 32 1.22 6.66% 85.73% 48.27% 3.58% 4.53% 2.61% 14.27% 6.09%
Broadcasting 28 1.35 7.24% 46.12% 48.77% 3.58% 11.54% 2.61% 53.88% 4.75%
Brokerage & Investment Banking 31 1.17 6.49% 35.40% 31.74% 3.16% 14.76% 2.31% 64.60% 3.79%
Building Materials 44 1.19 6.54% 84.21% 34.54% 3.16% 17.03% 2.31% 15.79% 5.87%
Business & Consumer Services 160 1.09 6.13% 81.71% 41.17% 3.58% 10.17% 2.61% 18.29% 5.48%
Cable TV 11 0.93 5.47% 62.46% 20.07% 2.50% 18.08% 1.83% 37.54% 4.10%
Chemical (Basic) 35 1.16 6.44% 69.08% 45.02% 3.58% 10.02% 2.61% 30.92% 5.26%
Chemical (Diversified) 4 1.50 7.88% 67.84% 37.29% 3.16% 3.90% 2.31% 32.16% 6.09%
Chemical (Specialty) 81 1.10 6.19% 83.70% 40.72% 3.58% 10.12% 2.61% 16.30% 5.60%
Coal & Related Energy 18 0.92 5.39% 70.60% 58.57% 3.58% 0.74% 2.61% 29.40% 4.57%
Computer Services 83 1.20 6.59% 78.78% 48.44% 3.58% 8.19% 2.61% 21.22% 5.75%
Computers/Peripherals 46 1.29 6.97% 92.96% 51.27% 3.58% 4.96% 2.61% 7.04% 6.66%
Construction Supplies 48 1.11 6.21% 78.16% 40.01% 3.58% 13.00% 2.61% 21.84% 5.42%
Diversified 22 0.75 4.71% 81.55% 30.11% 3.16% 7.24% 2.31% 18.45% 4.27%
Drugs (Biotechnology) 581 0.99 5.72% 86.73% 50.80% 3.58% 0.53% 2.61% 13.27% 5.31%
Drugs (Pharmaceutical) 298 1.08 6.07% 87.19% 56.17% 3.58% 2.18% 2.61% 12.81% 5.63%
Education 35 1.13 6.28% 79.55% 41.50% 3.58% 7.64% 2.61% 20.45% 5.53%
Electrical Equipment 104 1.25 6.79% 87.96% 57.66% 3.58% 4.98% 2.61% 12.04% 6.29%
Electronics (Consumer & Office) 16 0.98 5.65% 92.92% 52.54% 3.58% 4.87% 2.61% 7.08% 5.43%
Electronics (General) 137 1.09 6.11% 88.69% 43.45% 3.58% 6.66% 2.61% 11.31% 5.72%
Engineering/Construction 48 1.06 6.00% 79.62% 36.36% 3.16% 13.53% 2.31% 20.38% 5.24%
Entertainment 108 1.01 5.80% 86.78% 59.63% 3.58% 2.64% 2.61% 13.22% 5.38%
Environmental & Waste Services 58 1.24 6.77% 82.74% 43.01% 3.58% 5.90% 2.61% 17.26% 6.05%
Farming/Agriculture 36 1.03 5.88% 73.09% 46.45% 3.58% 7.65% 2.61% 26.91% 5.00%
Financial Svcs. (Non-bank & Insurance) 223 0.93 5.44% 12.10% 28.52% 3.16% 15.60% 2.31% 87.90% 2.69%
Food Processing 92 0.75 4.69% 76.62% 27.69% 3.16% 10.54% 2.31% 23.38% 4.14%
Food Wholesalers 15 1.40 7.45% 68.06% 54.01% 3.58% 8.60% 2.61% 31.94% 5.91%
Furn/Home Furnishings 32 1.11 6.21% 77.73% 44.77% 3.58% 11.74% 2.61% 22.27% 5.41%
Green & Renewable Energy 20 1.59 8.24% 60.01% 81.76% 8.12% 1.43% 5.93% 39.99% 7.32%
Healthcare Products 244 0.94 5.49% 92.07% 43.81% 3.58% 4.15% 2.61% 7.93% 5.26%
Healthcare Support Services 131 1.06 6.00% 80.29% 46.86% 3.58% 7.72% 2.61% 19.71% 5.33%
Heathcare Information and Technology 142 0.94 5.50% 91.14% 46.28% 3.58% 3.57% 2.61% 8.86% 5.25%
Homebuilding 29 1.69 8.66% 81.99% 39.47% 3.16% 18.63% 2.31% 18.01% 7.51%
Hospitals/Healthcare Facilities 31 1.41 7.50% 58.49% 52.31% 3.58% 8.99% 2.61% 41.51% 5.47%
Hotel/Gaming 66 1.79 9.12% 68.49% 43.87% 3.58% 6.02% 2.61% 31.51% 7.07%
Household Products 118 0.98 5.66% 88.82% 58.57% 3.58% 5.87% 2.61% 11.18% 5.32%
Information Services 79 1.25 6.81% 90.60% 46.44% 3.58% 11.22% 2.61% 9.40% 6.42%
Insurance (General) 23 0.92 5.42% 78.96% 37.15% 3.16% 11.43% 2.31% 21.04% 4.77%
Insurance (Life) 24 1.22 6.70% 51.92% 31.81% 3.16% 14.28% 2.31% 48.08% 4.59%
Insurance (Prop/Cas.) 52 0.86 5.16% 80.99% 29.24% 3.16% 13.37% 2.31% 19.01% 4.62%
Investments & Asset Management 687 1.05 5.95% 78.17% 31.97% 3.16% 1.42% 2.31% 21.83% 5.16%
Machinery 111 1.25 6.80% 87.63% 34.75% 3.16% 10.58% 2.31% 12.37% 6.24%
Metals & Mining 74 1.17 6.48% 84.62% 68.08% 4.67% 2.07% 3.41% 15.38% 6.01%
Office Equipment & Services 18 1.38 7.38% 67.45% 31.01% 3.16% 8.96% 2.31% 32.55% 5.73%
Oil/Gas (Integrated) 4 1.47 7.72% 78.91% 28.71% 3.16% 19.34% 2.31% 21.09% 6.58%
Oil/Gas (Production and Exploration) 183 1.32 7.11% 76.26% 55.48% 3.58% 2.04% 2.61% 23.74% 6.04%
Oil/Gas Distribution 21 1.40 7.43% 53.43% 44.98% 3.58% 9.76% 2.61% 46.57% 5.18%
Oilfield Svcs/Equip. 100 1.50 7.85% 64.88% 49.63% 3.58% 3.89% 2.61% 35.12% 6.01%
Packaging & Container 26 1.01 5.79% 66.81% 26.38% 3.16% 17.09% 2.31% 33.19% 4.63%
Paper/Forest Products 11 1.21 6.66% 70.76% 30.61% 3.16% 12.01% 2.31% 29.24% 5.38%
Power 50 0.83 5.04% 58.30% 19.49% 2.50% 15.61% 1.83% 41.70% 3.70%
Precious Metals 76 0.99 5.71% 89.28% 56.29% 3.58% 3.11% 2.61% 10.72% 5.37%
Publishing & Newspapers 21 1.69 8.69% 73.10% 30.80% 3.16% 11.64% 2.31% 26.90% 6.97%
R.E.I.T. 238 1.35 7.23% 65.02% 32.65% 3.16% 1.94% 2.31% 34.98% 5.51%
Real Estate (Development) 19 1.06 6.02% 55.57% 51.32% 3.58% 2.60% 2.61% 44.43% 4.50%
Real Estate (General/Diversified) 10 0.91 5.35% 79.11% 30.70% 3.16% 9.94% 2.31% 20.89% 4.72%
Real Estate (Operations & Services) 51 1.15 6.37% 63.95% 41.43% 3.58% 6.54% 2.61% 36.05% 5.01%
Recreation 60 1.23 6.71% 77.17% 50.35% 3.58% 7.75% 2.61% 22.83% 5.78%
Reinsurance 2 1.37 7.32% 72.02% 25.95% 3.16% 22.96% 2.31% 27.98% 5.92%
Restaurant/Dining 70 1.56 8.11% 78.53% 42.76% 3.58% 7.11% 2.61% 21.47% 6.93%
Retail (Automotive) 32 1.40 7.44% 72.15% 44.49% 3.58% 14.20% 2.61% 27.85% 6.09%
Retail (Building Supply) 16 1.52 7.97% 88.15% 44.73% 3.58% 15.50% 2.61% 11.85% 7.34%
Retail (Distributors) 68 1.28 6.94% 75.54% 43.10% 3.58% 11.70% 2.61% 24.46% 5.88%
Retail (General) 16 1.12 6.24% 86.17% 33.88% 3.16% 18.45% 2.31% 13.83% 5.70%
Retail (Grocery and Food) 15 0.30 2.78% 59.44% 34.27% 3.16% 13.31% 2.31% 40.56% 2.59%
Retail (Online) 60 1.10 6.19% 92.46% 58.82% 3.58% 4.76% 2.61% 7.54% 5.92%
Retail (Special Lines) 76 1.44 7.63% 74.21% 45.57% 3.58% 14.67% 2.61% 25.79% 6.34%
Rubber& Tires 2 1.16 6.41% 39.28% 47.06% 3.58% 17.42% 2.61% 60.72% 4.11%
Semiconductor 67 1.16 6.44% 93.65% 37.46% 3.16% 6.80% 2.31% 6.35% 6.18%
Semiconductor Equip 34 1.34 7.19% 95.20% 33.22% 3.16% 9.19% 2.31% 4.80% 6.95%
Shipbuilding & Marine 8 0.99 5.71% 72.48% 51.04% 3.58% 3.19% 2.61% 27.52% 4.86%
Shoe 12 1.19 6.54% 94.54% 34.71% 3.16% 9.86% 2.31% 5.46% 6.31%
Software (Entertainment) 88 1.20 6.62% 98.00% 54.61% 3.58% 2.21% 2.61% 2.00% 6.54%
Software (Internet) 36 1.00 5.77% 92.87% 38.09% 3.16% 1.29% 2.31% 7.13% 5.52%
Software (System & Application) 375 1.14 6.35% 94.63% 45.74% 3.58% 3.36% 2.61% 5.37% 6.15%
Steel 28 1.13 6.31% 75.26% 33.13% 3.16% 13.30% 2.31% 24.74% 5.32%
Telecom (Wireless) 17 0.96 5.60% 56.08% 48.16% 3.58% 3.26% 2.61% 43.92% 4.29%
Telecom. Equipment 82 1.08 6.10% 91.97% 40.53% 3.58% 5.29% 2.61% 8.03% 5.82%
Telecom. Services 42 0.85 5.10% 49.88% 38.67% 3.16% 5.86% 2.31% 50.12% 3.70%
Tobacco 16 1.00 5.74% 79.38% 24.88% 2.50% 8.23% 1.83% 20.62% 4.93%
Transportation 17 0.79 4.86% 81.37% 28.34% 3.16% 14.40% 2.31% 18.63% 4.39%
Transportation (Railroads) 4 0.73 4.62% 83.38% 16.39% 2.50% 17.34% 1.83% 16.62% 4.15%
Trucking 34 1.44 7.61% 79.20% 32.99% 3.16% 16.04% 2.31% 20.80% 6.51%
Utility (General) 16 0.89 5.29% 59.10% 18.83% 2.50% 9.75% 1.83% 40.90% 3.87%
Utility (Water) 14 0.77 4.75% 74.44% 27.09% 3.16% 10.01% 2.31% 25.56% 4.13%
Total Market 7229 1.09 6.15% 71.38% 41.01% 3.58% 7.05% 2.61% 28.62% 5.14%
Total Market (without financials) 5619 1.15 6.38% 83.34% 44.99% 3.58% 6.01% 2.61% 16.66% 5.75%

Last Updated in January 2022
By Aswath Damodaran

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