Cost of Capital by Sector (US)

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2021

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 61 1.08 6.01% 56.34% 57.74% 3.00% 3.35% 2.19% 43.66% 4.34%
Aerospace/Defense 72 1.07 5.96% 75.16% 34.89% 2.58% 7.37% 1.88% 24.84% 4.95%
Air Transport 17 1.61 8.52% 38.26% 46.15% 3.00% 6.00% 2.19% 61.74% 4.61%
Apparel 51 1.10 6.11% 71.74% 47.84% 3.00% 4.75% 2.19% 28.26% 5.00%
Auto & Truck 19 1.28 6.98% 72.12% 45.24% 3.00% 7.86% 2.19% 27.88% 5.65%
Auto Parts 52 1.20 6.61% 80.40% 43.16% 3.00% 7.35% 2.19% 19.60% 5.74%
Bank (Money Center) 7 0.83 4.84% 31.63% 21.59% 1.92% 16.16% 1.40% 68.37% 2.49%
Banks (Regional) 598 0.64 3.97% 62.02% 19.48% 1.92% 16.42% 1.40% 37.98% 3.00%
Beverage (Alcoholic) 23 0.78 4.60% 81.03% 37.01% 2.58% 5.33% 1.88% 18.97% 4.09%
Beverage (Soft) 41 0.79 4.66% 82.24% 49.70% 3.00% 3.32% 2.19% 17.76% 4.22%
Broadcasting 29 1.13 6.26% 45.10% 45.56% 3.00% 9.26% 2.19% 54.90% 4.02%
Brokerage & Investment Banking 39 1.13 6.27% 31.36% 35.90% 2.58% 9.75% 1.88% 68.64% 3.26%
Building Materials 42 1.09 6.07% 79.18% 33.99% 2.58% 15.15% 1.88% 20.82% 5.20%
Business & Consumer Services 169 0.93 5.30% 80.18% 45.65% 3.00% 7.43% 2.19% 19.82% 4.69%
Cable TV 13 0.94 5.38% 65.81% 32.02% 2.58% 18.97% 1.88% 34.19% 4.18%
Chemical (Basic) 48 0.99 5.62% 64.47% 48.06% 3.00% 2.98% 2.19% 35.53% 4.40%
Chemical (Diversified) 5 1.36 7.36% 63.25% 36.16% 2.58% 1.25% 1.88% 36.75% 5.35%
Chemical (Specialty) 97 0.93 5.30% 79.77% 38.54% 2.58% 6.43% 1.88% 20.23% 4.61%
Coal & Related Energy 29 0.83 4.84% 51.38% 42.27% 3.00% 0.00% 2.19% 48.62% 3.55%
Computer Services 116 1.12 6.20% 71.56% 45.89% 3.00% 5.55% 2.19% 28.44% 5.06%
Computers/Peripherals 52 1.18 6.52% 91.45% 42.87% 3.00% 3.71% 2.19% 8.55% 6.15%
Construction Supplies 46 1.02 5.75% 74.20% 33.39% 2.58% 10.79% 1.88% 25.80% 4.75%
Diversified 29 1.02 5.77% 77.08% 29.94% 2.58% 6.52% 1.88% 22.92% 4.88%
Drugs (Biotechnology) 547 0.89 5.11% 86.58% 50.10% 3.00% 0.52% 2.19% 13.42% 4.72%
Drugs (Pharmaceutical) 287 0.91 5.22% 84.62% 55.45% 3.00% 1.88% 2.19% 15.38% 4.75%
Education 38 1.15 6.35% 80.43% 55.73% 3.00% 4.02% 2.19% 19.57% 5.53%
Electrical Equipment 122 1.06 5.93% 86.69% 55.12% 3.00% 4.44% 2.19% 13.31% 5.43%
Electronics (Consumer & Office) 22 0.96 5.44% 91.32% 54.91% 3.00% 1.05% 2.19% 8.68% 5.16%
Electronics (General) 157 0.89 5.11% 88.12% 43.87% 3.00% 6.11% 2.19% 11.88% 4.76%
Engineering/Construction 61 1.06 5.92% 77.98% 42.04% 3.00% 9.31% 2.19% 22.02% 5.10%
Entertainment 118 0.88 5.10% 86.81% 68.06% 4.09% 0.53% 2.99% 13.19% 4.82%
Environmental & Waste Services 86 0.95 5.43% 79.87% 50.43% 3.00% 2.69% 2.19% 20.13% 4.78%
Farming/Agriculture 32 0.87 5.06% 68.94% 45.30% 3.00% 6.45% 2.19% 31.06% 4.17%
Financial Svcs. (Non-bank & Insurance) 235 0.80 4.69% 10.04% 27.74% 2.58% 12.91% 1.88% 89.96% 2.17%
Food Processing 101 0.64 3.93% 75.18% 32.56% 2.58% 8.56% 1.88% 24.82% 3.42%
Food Wholesalers 18 1.03 5.81% 64.10% 58.03% 3.00% 0.52% 2.19% 35.90% 4.51%
Furn/Home Furnishings 40 0.88 5.10% 74.59% 40.52% 3.00% 4.79% 2.19% 25.41% 4.36%
Green & Renewable Energy 25 0.98 5.56% 60.95% 56.04% 3.00% 1.74% 2.19% 39.05% 4.25%
Healthcare Products 265 0.83 4.86% 90.34% 46.19% 3.00% 2.57% 2.19% 9.66% 4.61%
Healthcare Support Services 129 0.85 4.95% 75.93% 44.49% 3.00% 5.65% 2.19% 24.07% 4.28%
Heathcare Information and Technology 139 0.79 4.66% 89.21% 42.45% 3.00% 4.16% 2.19% 10.79% 4.40%
Homebuilding 30 1.46 7.82% 75.34% 36.56% 2.58% 15.91% 1.88% 24.66% 6.35%
Hospitals/Healthcare Facilities 32 1.28 6.99% 50.15% 49.21% 3.00% 8.16% 2.19% 49.85% 4.59%
Hotel/Gaming 66 1.56 8.32% 63.60% 43.69% 3.00% 2.02% 2.19% 36.40% 6.09%
Household Products 140 0.73 4.38% 87.07% 54.66% 3.00% 5.06% 2.19% 12.93% 4.09%
Information Services 77 1.01 5.70% 91.44% 42.37% 3.00% 9.75% 2.19% 8.56% 5.40%
Insurance (General) 21 0.68 4.15% 71.02% 30.12% 2.58% 12.61% 1.88% 28.98% 3.49%
Insurance (Life) 26 0.98 5.54% 45.47% 30.68% 2.58% 15.12% 1.88% 54.53% 3.55%
Insurance (Prop/Cas.) 55 0.64 3.97% 79.96% 22.93% 1.92% 10.86% 1.40% 20.04% 3.45%
Investments & Asset Management 348 0.93 5.32% 68.86% 28.85% 2.58% 4.64% 1.88% 31.14% 4.25%
Machinery 125 1.05 5.88% 83.58% 34.28% 2.58% 8.81% 1.88% 16.42% 5.22%
Metals & Mining 86 0.90 5.20% 80.74% 67.84% 4.09% 1.70% 2.99% 19.26% 4.77%
Office Equipment & Services 22 1.00 5.65% 67.65% 31.11% 2.58% 13.20% 1.88% 32.35% 4.43%
Oil/Gas (Integrated) 3 1.26 6.88% 69.40% 26.39% 2.58% 8.54% 1.88% 30.60% 5.35%
Oil/Gas (Production and Exploration) 278 1.18 6.52% 58.11% 56.28% 3.00% 0.68% 2.19% 41.89% 4.70%
Oil/Gas Distribution 57 1.16 6.39% 43.54% 40.78% 3.00% 4.55% 2.19% 56.46% 4.02%
Oilfield Svcs/Equip. 135 1.21 6.63% 56.36% 50.27% 3.00% 1.19% 2.19% 43.64% 4.69%
Packaging & Container 26 0.92 5.28% 64.47% 29.22% 2.58% 15.67% 1.88% 35.53% 4.07%
Paper/Forest Products 15 1.14 6.30% 72.71% 35.67% 2.58% 5.94% 1.88% 27.29% 5.10%
Power 55 0.67 4.08% 56.15% 19.86% 1.92% 9.91% 1.40% 43.85% 2.90%
Precious Metals 93 0.76 4.50% 88.74% 67.76% 4.09% 1.08% 2.99% 11.26% 4.33%
Publishing & Newspapers 29 1.41 7.58% 64.93% 37.47% 2.58% 5.76% 1.88% 35.07% 5.58%
R.E.I.T. 238 1.21 6.62% 56.58% 32.40% 2.58% 1.26% 1.88% 43.42% 4.56%
Real Estate (Development) 25 0.85 4.94% 51.36% 60.70% 3.00% 2.84% 2.19% 48.64% 3.60%
Real Estate (General/Diversified) 11 0.78 4.62% 77.39% 20.99% 1.92% 7.34% 1.40% 22.61% 3.89%
Real Estate (Operations & Services) 61 0.92 5.28% 71.03% 34.72% 2.58% 4.38% 1.88% 28.97% 4.29%
Recreation 69 0.87 5.02% 80.32% 56.40% 3.00% 5.78% 2.19% 19.68% 4.46%
Reinsurance 2 1.16 6.42% 72.19% 25.23% 2.58% 12.57% 1.88% 27.81% 5.16%
Restaurant/Dining 79 1.34 7.28% 74.79% 53.63% 3.00% 3.19% 2.19% 25.21% 5.99%
Retail (Automotive) 30 1.30 7.06% 66.79% 42.82% 3.00% 11.65% 2.19% 33.21% 5.44%
Retail (Building Supply) 15 1.54 8.22% 84.69% 40.60% 3.00% 13.48% 2.19% 15.31% 7.30%
Retail (Distributors) 85 0.97 5.51% 68.62% 41.97% 3.00% 12.21% 2.19% 31.38% 4.47%
Retail (General) 17 0.90 5.17% 82.41% 38.91% 2.58% 12.48% 1.88% 17.59% 4.59%
Retail (Grocery and Food) 14 0.24 2.07% 51.46% 37.72% 2.58% 13.52% 1.88% 48.54% 1.98%
Retail (Online) 75 1.16 6.42% 93.33% 52.87% 3.00% 2.93% 2.19% 6.67% 6.14%
Retail (Special Lines) 85 1.28 6.98% 67.45% 49.01% 3.00% 8.06% 2.19% 32.55% 5.42%
Rubber& Tires 3 1.09 6.09% 36.38% 43.83% 3.00% 5.30% 2.19% 63.62% 3.61%
Semiconductor 70 1.00 5.66% 91.15% 37.26% 2.58% 6.41% 1.88% 8.85% 5.33%
Semiconductor Equip 40 1.07 5.98% 92.56% 35.91% 2.58% 7.38% 1.88% 7.44% 5.68%
Shipbuilding & Marine 11 1.04 5.82% 61.67% 29.83% 2.58% 2.30% 1.88% 38.33% 4.31%
Shoe 11 0.98 5.57% 93.57% 31.50% 2.58% 6.63% 1.88% 6.43% 5.33%
Software (Entertainment) 101 0.96 5.46% 97.45% 62.61% 3.00% 0.58% 2.19% 2.55% 5.37%
Software (Internet) 36 0.77 4.58% 91.89% 32.73% 2.58% 3.30% 1.88% 8.11% 4.36%
Software (System & Application) 388 0.91 5.23% 93.85% 47.97% 3.00% 2.77% 2.19% 6.15% 5.05%
Steel 32 0.95 5.43% 66.56% 39.32% 2.58% 6.01% 1.88% 33.44% 4.24%
Telecom (Wireless) 16 0.53 3.44% 64.70% 39.78% 2.58% 3.57% 1.88% 35.30% 2.89%
Telecom. Equipment 96 0.87 5.03% 87.11% 43.11% 3.00% 3.85% 2.19% 12.89% 4.67%
Telecom. Services 58 0.66 4.04% 54.60% 43.53% 3.00% 3.93% 2.19% 45.40% 3.20%
Tobacco 15 0.72 4.34% 76.74% 24.49% 1.92% 8.69% 1.40% 23.26% 3.65%
Transportation 21 0.91 5.21% 75.93% 28.68% 2.58% 10.56% 1.88% 24.07% 4.41%
Transportation (Railroads) 6 0.84 4.92% 81.61% 16.83% 1.92% 15.58% 1.40% 18.39% 4.27%
Trucking 35 1.11 6.18% 74.76% 38.78% 2.58% 9.70% 1.88% 25.24% 5.09%
Utility (General) 16 0.74 4.42% 57.24% 18.44% 1.92% 9.74% 1.40% 42.76% 3.13%
Utility (Water) 17 0.73 4.39% 71.19% 35.96% 2.58% 10.79% 1.88% 28.81% 3.67%
Total Market 7582 0.94 5.37% 67.42% 41.21% 3.00% 5.76% 2.19% 32.58% 4.34%
Total Market (without financials) 6253 0.98 5.55% 79.93% 44.77% 3.00% 4.39% 2.19% 20.07% 4.87%

Last Updated in January 2021
By Aswath Damodaran