Cost of Capital by Sector (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2019

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 48 1.22 9.93% 58.46% 66.44% 5.43% 5.69% 4.07% 41.54% 7.49%
Aerospace/Defense 85 1.24 10.07% 79.75% 40.77% 4.56% 11.40% 3.42% 20.25% 8.72%
Air Transport 18 1.02 8.77% 52.68% 34.19% 4.18% 6.48% 3.14% 47.32% 6.10%
Apparel 50 0.93 8.23% 74.07% 48.89% 4.56% 14.19% 3.42% 25.93% 6.98%
Auto & Truck 14 0.79 7.41% 33.85% 38.24% 4.18% 10.15% 3.14% 66.15% 4.58%
Auto Parts 52 1.17 9.63% 71.45% 44.28% 4.56% 11.57% 3.42% 28.55% 7.86%
Bank (Money Center) 10 0.71 6.93% 32.91% 18.29% 3.58% 26.01% 2.69% 67.09% 4.08%
Banks (Regional) 633 0.57 6.07% 56.65% 20.60% 3.58% 26.99% 2.69% 43.35% 4.60%
Beverage (Alcoholic) 31 1.30 10.42% 74.53% 33.49% 4.18% 2.55% 3.14% 25.47% 8.57%
Beverage (Soft) 37 1.18 9.70% 80.95% 50.32% 4.56% 3.87% 3.42% 19.05% 8.50%
Broadcasting 24 1.02 8.76% 40.89% 37.29% 4.18% 2.54% 3.14% 59.11% 5.44%
Brokerage & Investment Banking 38 1.21 9.87% 25.21% 32.08% 4.18% 22.47% 3.14% 74.79% 4.83%
Building Materials 42 1.10 9.21% 75.19% 33.40% 4.18% 16.11% 3.14% 24.81% 7.70%
Business & Consumer Services 168 1.22 9.94% 73.70% 44.86% 4.56% 7.60% 3.42% 26.30% 8.22%
Cable TV 14 1.13 9.43% 58.58% 26.32% 4.18% 3.61% 3.14% 41.42% 6.82%
Chemical (Basic) 39 1.55 11.92% 60.07% 54.33% 4.56% 7.33% 3.42% 39.93% 8.52%
Chemical (Diversified) 6 1.82 13.51% 73.10% 32.60% 4.18% 3.18% 3.14% 26.90% 10.72%
Chemical (Specialty) 89 1.17 9.65% 75.40% 42.33% 4.56% 10.71% 3.42% 24.60% 8.12%
Coal & Related Energy 23 1.17 9.64% 59.74% 53.58% 4.56% 1.75% 3.42% 40.26% 7.14%
Computer Services 119 1.27 10.25% 71.85% 41.69% 4.56% 8.75% 3.42% 28.15% 8.32%
Computers/Peripherals 57 1.68 12.69% 79.92% 49.87% 4.56% 6.60% 3.42% 20.08% 10.83%
Construction Supplies 48 1.45 11.34% 68.55% 32.24% 4.18% 13.21% 3.14% 31.45% 8.76%
Diversified 23 1.36 10.78% 73.82% 39.46% 4.18% 7.41% 3.14% 26.18% 8.78%
Drugs (Biotechnology) 481 1.51 11.69% 84.09% 68.96% 5.43% 0.93% 4.07% 15.91% 10.48%
Drugs (Pharmaceutical) 237 1.47 11.41% 87.44% 72.45% 5.43% 2.26% 4.07% 12.56% 10.49%
Education 35 1.28 10.29% 76.49% 37.66% 4.18% 6.14% 3.14% 23.51% 8.61%
Electrical Equipment 116 1.32 10.56% 81.87% 57.29% 4.56% 4.36% 3.42% 18.13% 9.27%
Electronics (Consumer & Office) 19 1.19 9.78% 91.10% 62.71% 4.56% 7.67% 3.42% 8.90% 9.21%
Electronics (General) 160 1.02 8.74% 83.77% 46.69% 4.56% 11.67% 3.42% 16.23% 7.87%
Engineering/Construction 52 1.01 8.68% 67.17% 40.14% 4.56% 7.62% 3.42% 32.83% 6.96%
Entertainment 120 1.33 10.61% 83.43% 54.34% 4.56% 1.93% 3.42% 16.57% 9.42%
Environmental & Waste Services 91 1.19 9.78% 74.83% 46.15% 4.56% 3.23% 3.42% 25.17% 8.18%
Farming/Agriculture 33 0.72 6.95% 60.15% 29.07% 4.18% 9.64% 3.14% 39.85% 5.43%
Financial Svcs. (Non-bank & Insurance) 259 0.70 6.87% 8.08% 27.33% 4.18% 20.38% 3.14% 91.92% 3.44%
Food Processing 83 0.81 7.51% 68.12% 27.46% 4.18% 5.17% 3.14% 31.88% 6.12%
Food Wholesalers 18 1.62 12.36% 69.03% 40.99% 4.56% 4.71% 3.42% 30.97% 9.59%
Furn/Home Furnishings 30 0.88 7.95% 66.37% 43.51% 4.56% 16.96% 3.42% 33.63% 6.43%
Green & Renewable Energy 21 1.62 12.34% 40.58% 69.48% 5.43% 0.00% 4.07% 59.42% 7.43%
Healthcare Products 248 1.12 9.37% 87.06% 56.32% 4.56% 5.46% 3.42% 12.94% 8.60%
Healthcare Support Services 111 1.15 9.56% 73.41% 48.13% 4.56% 8.33% 3.42% 26.59% 7.92%
Heathcare Information and Technology 119 1.29 10.36% 85.30% 53.01% 4.56% 5.65% 3.42% 14.70% 9.34%
Homebuilding 31 0.98 8.53% 61.64% 34.08% 4.18% 24.35% 3.14% 38.36% 6.46%
Hospitals/Healthcare Facilities 34 1.12 9.34% 41.71% 49.69% 4.56% 6.88% 3.42% 58.29% 5.89%
Hotel/Gaming 70 1.01 8.68% 61.01% 35.01% 4.18% 9.55% 3.14% 38.99% 6.52%
Household Products 141 1.13 9.42% 82.56% 54.64% 4.56% 7.14% 3.42% 17.44% 8.37%
Information Services 71 1.12 9.36% 86.91% 37.11% 4.18% 10.37% 3.14% 13.09% 8.55%
Insurance (General) 20 0.87 7.88% 67.63% 24.63% 3.58% 13.97% 2.69% 32.37% 6.20%
Insurance (Life) 23 1.11 9.29% 48.84% 27.64% 4.18% 3.47% 3.14% 51.16% 6.14%
Insurance (Prop/Cas.) 50 0.74 7.09% 79.71% 23.90% 3.58% 15.95% 2.69% 20.29% 6.20%
Investments & Asset Management 172 1.10 9.26% 59.76% 35.43% 4.18% 7.09% 3.14% 40.24% 6.79%
Machinery 127 1.17 9.66% 78.78% 34.36% 4.18% 13.62% 3.14% 21.22% 8.27%
Metals & Mining 94 1.32 10.56% 70.53% 75.46% 8.43% 3.06% 6.32% 29.47% 9.31%
Office Equipment & Services 24 1.81 13.49% 61.97% 39.46% 4.18% 13.71% 3.14% 38.03% 9.55%
Oil/Gas (Integrated) 5 1.16 9.58% 85.29% 17.62% 3.58% 8.91% 2.69% 14.71% 8.57%
Oil/Gas (Production and Exploration) 301 1.45 11.34% 64.44% 57.36% 4.56% 1.93% 3.42% 35.56% 8.52%
Oil/Gas Distribution 20 1.07 9.06% 49.68% 36.03% 4.18% 8.05% 3.14% 50.32% 6.08%
Oilfield Svcs/Equip. 134 1.33 10.59% 68.13% 49.29% 4.56% 4.22% 3.42% 31.87% 8.31%
Packaging & Container 27 1.07 9.09% 60.09% 27.47% 4.18% 13.01% 3.14% 39.91% 6.71%
Paper/Forest Products 20 1.40 11.00% 67.40% 42.72% 4.56% 8.42% 3.42% 32.60% 8.53%
Power 51 0.54 5.92% 55.74% 20.53% 3.58% 13.59% 2.69% 44.26% 4.49%
Precious Metals 91 1.19 9.78% 82.48% 74.54% 5.43% 2.08% 4.07% 17.52% 8.78%
Publishing & Newspapers 33 1.26 10.16% 58.78% 39.32% 4.18% 12.00% 3.14% 41.22% 7.26%
R.E.I.T. 238 0.68 6.72% 52.44% 21.22% 3.58% 2.42% 2.69% 47.56% 4.80%
Real Estate (Development) 18 1.19 9.80% 59.01% 40.78% 4.56% 0.00% 3.42% 40.99% 7.19%
Real Estate (General/Diversified) 11 1.36 10.81% 66.74% 21.50% 3.58% 7.10% 2.69% 33.26% 8.11%
Real Estate (Operations & Services) 59 1.35 10.70% 60.48% 42.49% 4.56% 8.46% 3.42% 39.52% 7.82%
Recreation 72 0.98 8.51% 73.36% 42.73% 4.56% 7.43% 3.42% 26.64% 7.16%
Reinsurance 2 0.97 8.46% 77.00% 16.27% 3.58% 9.80% 2.69% 23.00% 7.13%
Restaurant/Dining 78 0.80 7.44% 73.79% 38.18% 4.18% 8.96% 3.14% 26.21% 6.31%
Retail (Automotive) 24 1.15 9.56% 58.17% 33.22% 4.18% 8.89% 3.14% 41.83% 6.87%
Retail (Building Supply) 17 1.12 9.34% 81.41% 46.94% 4.56% 20.08% 3.42% 18.59% 8.24%
Retail (Distributors) 88 1.44 11.26% 60.37% 44.59% 4.56% 8.15% 3.42% 39.63% 8.15%
Retail (General) 19 0.91 8.12% 74.58% 39.63% 4.18% 10.85% 3.14% 25.42% 6.85%
Retail (Grocery and Food) 12 0.45 5.37% 54.52% 33.06% 4.18% 3.01% 3.14% 45.48% 4.35%
Retail (Online) 79 1.42 11.12% 89.29% 54.22% 4.56% 3.85% 3.42% 10.71% 10.30%
Retail (Special Lines) 91 1.07 9.06% 65.95% 49.17% 4.56% 13.81% 3.42% 34.05% 7.14%
Rubber& Tires 4 0.42 5.17% 45.53% 29.03% 4.18% 25.00% 3.14% 54.47% 4.06%
Semiconductor 72 1.34 10.64% 87.61% 42.66% 4.56% 10.19% 3.42% 12.39% 9.75%
Semiconductor Equip 41 1.39 10.96% 85.78% 48.66% 4.56% 13.77% 3.42% 14.22% 9.88%
Shipbuilding & Marine 9 1.08 9.10% 63.81% 55.89% 4.56% 0.00% 3.42% 36.19% 7.05%
Shoe 10 0.75 7.18% 93.08% 38.65% 4.18% 18.57% 3.14% 6.92% 6.90%
Software (Entertainment) 92 1.26 10.18% 97.86% 65.58% 5.43% 3.47% 4.07% 2.14% 10.04%
Software (Internet) 44 1.46 11.37% 82.20% 51.90% 4.56% 0.85% 3.42% 17.80% 9.95%
Software (System & Application) 355 1.23 10.00% 88.60% 50.68% 4.56% 4.62% 3.42% 11.40% 9.25%
Steel 37 1.62 12.33% 66.56% 44.32% 4.56% 4.18% 3.42% 33.44% 9.35%
Telecom (Wireless) 21 1.26 10.21% 46.34% 44.49% 4.56% 2.38% 3.42% 53.66% 6.57%
Telecom. Equipment 98 1.09 9.18% 84.71% 45.72% 4.56% 6.20% 3.42% 15.29% 8.30%
Telecom. Services 67 1.22 9.94% 52.85% 54.23% 4.56% 3.72% 3.42% 47.15% 6.87%
Tobacco 17 1.29 10.37% 79.85% 48.08% 4.56% 7.27% 3.42% 20.15% 8.97%
Transportation 19 1.14 9.49% 70.19% 33.82% 4.18% 5.29% 3.14% 29.81% 7.59%
Transportation (Railroads) 10 2.47 17.39% 78.78% 20.12% 3.58% 0.00% 2.69% 21.22% 14.27%
Trucking 28 1.22 9.94% 49.24% 41.51% 4.56% 1.23% 3.42% 50.76% 6.63%
Utility (General) 18 0.27 4.27% 58.36% 15.34% 3.58% 14.66% 2.69% 41.64% 3.61%
Utility (Water) 19 0.42 5.21% 69.93% 22.94% 3.58% 9.49% 2.69% 30.07% 4.45%
Total Market  7209 1.12 9.38% 60.01% 42.67% 4.56% 8.76% 3.42% 39.99% 7.00%
Total Market (without financials) 6004 1.21 9.87% 74.34% 46.24% 4.56% 6.21% 3.42% 25.66% 8.22%

Last Updated in January 2019
By Aswath Damodaran