Cost of Capital by Sector

Data Used: S&P Capital IQ, Bloomberg and the Fed

Date of Analysis: Data used is as of January 2014

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

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 65 1.03 8.19% 65.55% 113.36% 7.04% 6.04% 6.62% 34.45% 7.64%
Aerospace/Defense 95 1.01 8.08% 84.04% 88.97% 5.54% 15.03% 4.71% 15.96% 7.54%
Air Transport 25 0.94 7.73% 47.74% 92.87% 6.04% 13.79% 5.21% 52.26% 6.41%
Apparel 70 1.15 8.77% 82.42% 94.86% 6.04% 10.29% 5.42% 17.58% 8.18%
Auto & Truck 26 1.28 9.42% 50.62% 103.75% 7.04% 4.71% 6.71% 49.38% 8.08%
Auto Parts 75 1.46 10.35% 75.76% 102.64% 7.04% 9.43% 6.38% 24.24% 9.38%
Bank 7 0.72 6.62% 54.29% 41.40% 4.04% 22.17% 3.14% 45.71% 5.03%
Banks (Regional) 721 0.58 5.96% 58.14% 70.20% 5.04% 18.00% 4.13% 41.86% 5.19%
Beverage  47 1.42 10.16% 81.86% 109.89% 7.04% 3.95% 6.76% 18.14% 9.54%
Beverage (Alcoholic) 19 1.14 8.74% 78.40% 97.07% 6.04% 10.72% 5.39% 21.60% 8.01%
Biotechnology 349 1.12 8.62% 91.61% 133.64% 7.04% 1.13% 6.96% 8.39% 8.48%
Broadcasting 30 1.53 10.70% 67.35% 110.90% 7.04% 13.21% 6.11% 32.65% 9.20%
Brokerage & Investment Banking 49 1.11 8.58% 19.98% 87.95% 5.54% 13.44% 4.80% 80.02% 5.55%
Building Materials 37 1.27 9.40% 76.89% 85.47% 5.54% 16.33% 4.64% 23.11% 8.30%
Business & Consumer Services 179 0.90 7.53% 77.38% 89.91% 5.54% 13.41% 4.80% 22.62% 6.91%
Cable TV 16 0.97 7.91% 67.01% 86.81% 5.54% 15.00% 4.71% 32.99% 6.86%
Chemical (Basic) 47 1.01 8.10% 77.12% 108.14% 7.04% 6.27% 6.60% 22.88% 7.76%
Chemical (Diversified) 10 1.42 10.12% 74.97% 64.97% 4.54% 25.03% 3.40% 25.03% 8.44%
Chemical (Specialty) 100 1.01 8.11% 85.99% 85.18% 5.54% 12.74% 4.83% 14.01% 7.65%
Coal & Related Energy 45 1.28 9.42% 53.58% 120.20% 7.04% 2.44% 6.87% 46.42% 8.24%
Computer Services 129 0.92 7.65% 83.00% 96.81% 6.04% 9.94% 5.44% 17.00% 7.27%
Computer Software 273 1.07 8.38% 92.01% 100.31% 7.04% 6.16% 6.61% 7.99% 8.24%
Computers/Peripherals 66 1.15 8.79% 91.89% 111.60% 7.04% 5.66% 6.64% 8.11% 8.61%
Construction 18 0.96 7.84% 76.65% 94.83% 6.04% 9.82% 5.45% 23.35% 7.28%
Diversified 20 0.77 6.89% 51.42% 58.91% 4.54% 12.60% 3.97% 48.58% 5.47%
Educational Services 40 1.24 9.22% 71.93% 120.83% 7.04% 11.84% 6.21% 28.07% 8.37%
Electrical Equipment 135 1.14 8.75% 87.92% 109.94% 7.04% 7.49% 6.51% 12.08% 8.48%
Electronics 191 1.02 8.16% 86.20% 111.11% 7.04% 7.52% 6.51% 13.80% 7.94%
Electronics (Consumer & Office) 26 1.37 9.88% 71.27% 101.29% 7.04% 8.97% 6.41% 28.73% 8.88%
Engineering 56 1.20 9.04% 81.49% 89.28% 5.54% 14.86% 4.72% 18.51% 8.24%
Entertainment 85 1.19 8.98% 79.38% 102.02% 7.04% 4.85% 6.70% 20.62% 8.51%
Environmental & Waste Services 108 1.13 8.71% 69.64% 118.46% 7.04% 5.02% 6.69% 30.36% 8.10%
Farming/Agriculture 29 0.79 7.01% 70.86% 84.88% 5.54% 9.01% 5.04% 29.14% 6.44%
Financial Svcs. 76 0.99 7.97% 49.48% 79.79% 5.04% 18.37% 4.11% 50.52% 6.02%
Financial Svcs. (Non-bank & Insurance) 17 1.05 8.29% 23.18% 66.66% 5.04% 9.77% 4.55% 76.82% 5.41%
Food Processing 97 0.85 7.30% 78.17% 86.41% 5.54% 14.00% 4.76% 21.83% 6.74%
Food Wholesalers 18 1.18 8.92% 85.63% 91.05% 6.04% 10.69% 5.39% 14.37% 8.41%
Furn/Home Furnishings 36 1.24 9.25% 78.33% 100.03% 7.04% 10.03% 6.33% 21.67% 8.62%
Healthcare Equipment 193 0.85 7.31% 85.28% 105.14% 7.04% 5.80% 6.63% 14.72% 7.21%
Healthcare Facilities 47 1.13 8.68% 45.27% 90.96% 6.04% 13.49% 5.23% 54.73% 6.79%
Healthcare Products 58 1.00 8.06% 83.47% 100.72% 7.04% 8.76% 6.42% 16.53% 7.79%
Healthcare Services 126 0.83 7.20% 78.17% 91.19% 6.04% 13.77% 5.21% 21.83% 6.77%
Heathcare Information and Technology 125 0.99 8.00% 87.32% 112.18% 7.04% 6.09% 6.61% 12.68% 7.83%
Heavy Construction 46 1.67 11.39% 63.98% 89.60% 5.54% 19.40% 4.47% 36.02% 8.89%
Homebuilding 32 1.71 11.61% 63.85% 105.53% 7.04% 6.68% 6.57% 36.15% 9.78%
Hotel/Gaming 89 1.27 9.41% 65.65% 99.66% 6.04% 10.48% 5.41% 34.35% 8.03%
Household Products 139 1.00 8.06% 83.80% 106.72% 7.04% 9.51% 6.37% 16.20% 7.79%
Information Services 71 0.84 7.26% 90.39% 66.77% 5.04% 17.05% 4.18% 9.61% 6.96%
Insurance (General) 26 0.92 7.64% 68.43% 55.60% 4.54% 19.19% 3.67% 31.57% 6.38%
Insurance (Life) 27 1.21 9.09% 60.00% 57.69% 4.54% 17.82% 3.73% 40.00% 6.95%
Insurance (Prop/Cas.) 53 0.76 6.86% 74.09% 65.78% 5.04% 19.42% 4.06% 25.91% 6.13%
Internet software and services 330 1.05 8.27% 96.00% 120.28% 7.04% 4.59% 6.72% 4.00% 8.20%
Investment Co. 65 0.82 7.12% 48.92% 76.57% 5.04% 6.62% 4.71% 51.08% 5.89%
Machinery 141 1.04 8.25% 85.11% 78.89% 5.04% 13.02% 4.38% 14.89% 7.68%
Metals & Mining 134 1.26 9.34% 67.47% 127.20% 7.04% 1.90% 6.91% 32.53% 8.55%
Office Equipment & Services 30 1.14 8.76% 64.48% 81.92% 5.54% 12.81% 4.83% 35.52% 7.37%
Oil/Gas (Integrated) 8 1.00 8.06% 92.13% 52.52% 4.54% 20.55% 3.61% 7.87% 7.71%
Oil/Gas (Production and Exploration) 411 1.24 9.24% 39.04% 112.16% 7.04% 6.29% 6.60% 60.96% 7.63%
Oil/Gas Distribution 80 0.82 7.12% 65.82% 63.33% 4.54% 4.18% 4.35% 34.18% 6.18%
Oilfield Svcs/Equip. 163 1.30 9.56% 83.14% 101.55% 7.04% 10.73% 6.28% 16.86% 9.01%
Packaging & Container 24 0.99 7.97% 67.03% 56.60% 4.54% 21.28% 3.57% 32.97% 6.52%
Paper/Forest Products 21 1.34 9.72% 65.79% 75.10% 5.04% 8.20% 4.63% 34.21% 7.98%
Pharma & Drugs 138 1.10 8.56% 87.82% 117.64% 7.04% 4.30% 6.74% 12.18% 8.33%
Power 106 0.68 6.43% 54.02% 55.54% 4.54% 16.03% 3.81% 45.98% 5.23%
Precious Metals 166 1.33 9.71% 72.98% 140.33% 7.04% 0.82% 6.98% 27.02% 8.97%
Publshing & Newspapers 52 1.08 8.45% 73.09% 88.39% 5.54% 13.92% 4.77% 26.91% 7.46%
R.E.I.T. 46 0.78 6.95% 14.93% 56.02% 4.54% 2.48% 4.43% 85.07% 4.80%
Railroad 10 1.08 8.43% 80.85% 67.40% 5.04% 20.51% 4.01% 19.15% 7.59%
Real Estate (Development) 22 0.99 7.99% 80.06% 94.11% 6.04% 3.00% 5.86% 19.94% 7.57%
Real Estate (General/Diversified) 11 0.72 6.63% 85.25% 74.92% 5.04% 8.72% 4.60% 14.75% 6.33%
Real Estate (Operations & Services) 47 1.40 10.05% 62.67% 101.66% 7.04% 8.56% 6.44% 37.33% 8.70%
Recreation 70 1.30 9.56% 79.92% 97.36% 6.04% 8.81% 5.51% 20.08% 8.75%
Reinsurance 3 0.56 5.85% 72.20% 37.61% 4.04% 13.34% 3.50% 27.80% 5.20%
Restaurant 84 0.86 7.32% 78.39% 78.32% 5.04% 15.17% 4.28% 21.61% 6.66%
Retail (Automotive) 30 1.15 8.80% 63.49% 84.47% 5.54% 19.23% 4.47% 36.51% 7.22%
Retail (Building Supply) 7 1.07 8.38% 81.85% 97.40% 6.04% 21.97% 4.71% 18.15% 7.72%
Retail (Distributors) 87 1.00 8.04% 69.53% 85.26% 5.54% 16.18% 4.64% 30.47% 7.00%
Retail (General) 21 0.98 7.94% 73.74% 77.55% 5.04% 25.03% 3.78% 26.26% 6.84%
Retail (Grocery and Food) 21 0.81 7.11% 63.75% 79.40% 5.04% 22.83% 3.89% 36.25% 5.94%
Retail (Internet) 47 1.03 8.19% 95.18% 114.31% 7.04% 9.80% 6.35% 4.82% 8.10%
Retail (Special Lines) 137 0.99 7.97% 72.57% 91.79% 6.04% 18.90% 4.90% 27.43% 7.13%
Rubber& Tires 4 1.27 9.38% 47.67% 106.10% 7.04% 15.21% 5.97% 52.33% 7.59%
Semiconductor 104 1.19 9.01% 88.48% 95.41% 6.04% 7.30% 5.60% 11.52% 8.61%
Semiconductor Equip 51 1.25 9.31% 85.49% 101.14% 7.04% 5.13% 6.68% 14.51% 8.93%
Shipbuilding & Marine 14 1.50 10.52% 60.48% 117.34% 7.04% 4.99% 6.69% 39.52% 9.01%
Shoe 14 0.83 7.19% 92.69% 78.29% 5.04% 19.82% 4.04% 7.31% 6.96%
Steel 37 1.19 8.99% 68.54% 83.60% 5.54% 14.13% 4.76% 31.46% 7.66%
Telecom (Wireless) 28 0.68 6.44% 48.75% 96.71% 6.04% 11.54% 5.34% 51.25% 5.88%
Telecom. Equipment 131 1.14 8.76% 90.28% 106.61% 7.04% 6.90% 6.55% 9.72% 8.55%
Telecom. Services 82 0.94 7.74% 58.40% 98.32% 6.04% 8.40% 5.53% 41.60% 6.82%
Thrift 223 0.53 5.70% 1.84% 69.10% 5.04% 18.93% 4.09% 98.16% 4.12%
Tobacco 12 0.94 7.73% 82.76% 58.61% 4.54% 14.23% 3.89% 17.24% 7.07%
Transportation 22 1.01 8.07% 82.81% 75.94% 5.04% 21.21% 3.97% 17.19% 7.37%
Trucking 28 1.17 8.87% 56.03% 82.51% 5.54% 27.93% 3.99% 43.97% 6.73%
Utility (General) 20 0.56 5.84% 59.05% 33.80% 4.04% 29.93% 2.83% 40.95% 4.61%
Utility (Water) 20 0.75 6.78% 63.33% 77.13% 5.04% 14.52% 4.31% 36.67% 5.87%
Total Market 7766 1.01 8.07% 57.38% 94.94% 6.04% 10.32% 5.42% 42.62% 6.94%

 



Last Updated in January 2014
By Aswath Damodaran