Date updated:

5-Jan-14

Aswath Damodaran
http://www.damodaran.com

To update this spreadsheet, enter the following

Long Term Treasury bond rate =

3.04%

Risk Premium to Use for Equity =

5.00% US implied premium

Global Defautl Spread to add to cost of debt =

0.00% None for the US

Do you want to use the marginal tax rate for cost of debt?

No

If yes, enter the marginal tax rate to use

Industry Name

40%

Number of Firms

Beta

Advertising

65

1.03

Aerospace/Defense

95

1.01

Air Transport

25

0.94

Apparel

70

1.15

Auto & Truck

26

1.28

Auto Parts

75

1.46

0.72

721

0.58

Beverage

47

1.42

Beverage (Alcoholic)

19

1.14

Biotechnology

349

1.12

Broadcasting

30

1.53

Brokerage & Investment Banking

49

1.11

Building Materials

37

1.27

179

0.90

Cable TV

16

0.97

Chemical (Basic)

47

1.01

Chemical (Diversified)

10

1.42

100

1.01

45

1.28

Computer Services

129

0.92

Computer Software

273

1.07

Computers/Peripherals

66

1.15

Construction

18

0.96

Diversified

20

0.77

Educational Services

40

1.24

Bank
Banks (Regional)

Business & Consumer Services

Chemical (Specialty)
Coal & Related Energy

Cost of Equity

8.19%
8.08%
7.73%
8.77%
9.42%
10.35%
6.62%
5.96%
10.16%
8.74%
8.62%
10.70%
8.58%
9.40%
7.53%
7.91%
8.10%
10.12%
8.11%
9.42%
7.65%
8.38%
8.79%
7.84%
6.89%
9.22%

E/(D+E)

65.55%
84.04%
47.74%
82.42%
50.62%
75.76%
54.29%
58.14%
81.86%
78.40%
91.61%
67.35%
19.98%
76.89%
77.38%
67.01%
77.12%
74.97%
85.99%
53.58%
83.00%
92.01%
91.89%
76.65%
51.42%
71.93%

Std Dev in Stock

113.36%
88.97%
92.87%
94.86%
103.75%
102.64%
41.40%
70.20%
109.89%
97.07%
133.64%
110.90%
87.95%
85.47%
89.91%
86.81%
108.14%
64.97%
85.18%
120.20%
96.81%
100.31%
111.60%
94.83%
58.91%
120.83%

Electrical Equipment

135

1.14

Electronics

191

1.02

Electronics (Consumer & Office)

26

1.37

Engineering

56

1.20

Entertainment

85

1.19

108

1.13

Farming/Agriculture

29

0.79

Financial Svcs.

76

0.99

Financial Svcs. (Non-bank & Insurance)

17

1.05

Food Processing

97

0.85

Food Wholesalers

18

1.18

Furn/Home Furnishings

36

1.24

Healthcare Equipment

193

0.85

Healthcare Facilities

47

1.13

Healthcare Products

58

1.00

Healthcare Services

126

0.83

Heathcare Information and Technology

125

0.99

Heavy Construction

46

1.67

Homebuilding

32

1.71

Hotel/Gaming

89

1.27

Household Products

139

1.00

Information Services

71

0.84

Insurance (General)

26

0.92

Insurance (Life)

27

1.21

Insurance (Prop/Cas.)

53

0.76

330

1.05

65

0.82

Machinery

141

1.04

Metals & Mining

134

1.26

30

1.14

Environmental & Waste Services

Internet software and services

Investment Co.

Office Equipment & Services

Oil/Gas (Integrated)

1.00

411

1.24

Oil/Gas Distribution

80

0.82

Oilfield Svcs/Equip.

163

1.30

Packaging & Container

24

0.99

Paper/Forest Products

21

1.34

Pharma & Drugs

138

1.10

Power

106

0.68

Precious Metals

166

1.33

Publshing & Newspapers

52

1.08

R.E.I.T.

46

0.78

Oil/Gas (Production and Exploration)

8.75%
8.16%
9.88%
9.04%
8.98%
8.71%
7.01%
7.97%
8.29%
7.30%
8.92%
9.25%
7.31%
8.68%
8.06%
7.20%
8.00%
11.39%
11.61%
9.41%
8.06%
7.26%
7.64%
9.09%
6.86%
8.27%
7.12%
8.25%
9.34%
8.76%
8.06%
9.24%
7.12%
9.56%
7.97%
9.72%
8.56%
6.43%
9.71%
8.45%
6.95%

87.92%
86.20%
71.27%
81.49%
79.38%
69.64%
70.86%
49.48%
23.18%
78.17%
85.63%
78.33%
85.28%
45.27%
83.47%
78.17%
87.32%
63.98%
63.85%
65.65%
83.80%
90.39%
68.43%
60.00%
74.09%
96.00%
48.92%
85.11%
67.47%
64.48%
92.13%
39.04%
65.82%
83.14%
67.03%
65.79%
87.82%
54.02%
72.98%
73.09%
14.93%

109.94%
111.11%
101.29%
89.28%
102.02%
118.46%
84.88%
79.79%
66.66%
86.41%
91.05%
100.03%
105.14%
90.96%
100.72%
91.19%
112.18%
89.60%
105.53%
99.66%
106.72%
66.77%
55.60%
57.69%
65.78%
120.28%
76.57%
78.89%
127.20%
81.92%
52.52%
112.16%
63.33%
101.55%
56.60%
75.10%
117.64%
55.54%
140.33%
88.39%
56.02%

Utility (Water)

20

0.75

8.43%
7.99%
6.63%
10.05%
9.56%
5.85%
7.32%
8.80%
8.38%
8.04%
7.94%
7.11%
8.19%
7.97%
9.38%
9.01%
9.31%
10.52%
7.19%
8.99%
6.44%
8.76%
7.74%
5.70%
7.73%
8.07%
8.87%
5.84%
6.78%

Total Market

7766

1.01

8.07%

Railroad

10

1.08

Real Estate (Development)

22

0.99

Real Estate (General/Diversified)

11

0.72

Real Estate (Operations & Services)

47

1.40

Recreation

70

1.30

0.56

Restaurant

84

0.86

Retail (Automotive)

30

1.15

1.07

Retail (Distributors)

87

1.00

Retail (General)

21

0.98

Retail (Grocery and Food)

21

0.81

Retail (Internet)

47

1.03

137

0.99

Rubber& Tires

1.27

Semiconductor

104

1.19

Semiconductor Equip

51

1.25

Shipbuilding & Marine

14

1.50

Shoe

14

0.83

Steel

37

1.19

Telecom (Wireless)

28

0.68

Telecom. Equipment

131

1.14

82

0.94

223

0.53

Tobacco

12

0.94

Transportation

22

1.01

Trucking

28

1.17

Utility (General)

20

0.56

Reinsurance

Retail (Building Supply)

Retail (Special Lines)

Telecom. Services
Thrift

80.85%
80.06%
85.25%
62.67%
79.92%
72.20%
78.39%
63.49%
81.85%
69.53%
73.74%
63.75%
95.18%
72.57%
47.67%
88.48%
85.49%
60.48%
92.69%
68.54%
48.75%
90.28%
58.40%
1.84%
82.76%
82.81%
56.03%
59.05%
63.33%

67.40%
94.11%
74.92%
101.66%
97.36%
37.61%
78.32%
84.47%
97.40%
85.26%
77.55%
79.40%
114.31%
91.79%
106.10%
95.41%
101.14%
117.34%
78.29%
83.60%
96.71%
106.61%
98.32%
69.10%
58.61%
75.94%
82.51%
33.80%
77.13%

57.38%

94.94%

Cost of Debt Lookup Table (based on std dev in stock prices)

Standard Deviation

Basis Spread

0.25

0.25

0.5

0.5

0.65

0.65

0.8

0.8

0.9

0.9

10

Cost of Debt

7.04%
5.54%
6.04%
6.04%
7.04%
7.04%
4.04%
5.04%
7.04%
6.04%
7.04%
7.04%
5.54%
5.54%
5.54%
5.54%
7.04%
4.54%
5.54%
7.04%
6.04%
7.04%
7.04%
6.04%
4.54%
7.04%

Tax Rate

6.04%
15.03%
13.79%
10.29%
4.71%
9.43%
22.17%
18.00%
3.95%
10.72%
1.13%
13.21%
13.44%
16.33%
13.41%
15.00%
6.27%
25.03%
12.74%
2.44%
9.94%
6.16%
5.66%
9.82%
12.60%
11.84%

0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
4.00%

After-tax Cost of Debt

6.62%
4.71%
5.21%
5.42%
6.71%
6.38%
3.14%
4.13%
6.76%
5.39%
6.96%
6.11%
4.80%
4.64%
4.80%
4.71%
6.60%
3.40%
4.83%
6.87%
5.44%
6.61%
6.64%
5.45%
3.97%
6.21%

D/(D+E)

34.45%
15.96%
52.26%
17.58%
49.38%
24.24%
45.71%
41.86%
18.14%
21.60%
8.39%
32.65%
80.02%
23.11%
22.62%
32.99%
22.88%
25.03%
14.01%
46.42%
17.00%
7.99%
8.11%
23.35%
48.58%
28.07%

Cost of Capital

7.64%
7.54%
6.41%
8.18%
8.08%
9.38%
5.03%
5.19%
9.54%
8.01%
8.48%
9.20%
5.55%
8.30%
6.91%
6.86%
7.76%
8.44%
7.65%
8.24%
7.27%
8.24%
8.61%
7.28%
5.47%
8.37%

7.04%
7.04%
7.04%
5.54%
7.04%
7.04%
5.54%
5.04%
5.04%
5.54%
6.04%
7.04%
7.04%
6.04%
7.04%
6.04%
7.04%
5.54%
7.04%
6.04%
7.04%
5.04%
4.54%
4.54%
5.04%
7.04%
5.04%
5.04%
7.04%
5.54%
4.54%
7.04%
4.54%
7.04%
4.54%
5.04%
7.04%
4.54%
7.04%
5.54%
4.54%

7.49%
7.52%
8.97%
14.86%
4.85%
5.02%
9.01%
18.37%
9.77%
14.00%
10.69%
10.03%
5.80%
13.49%
8.76%
13.77%
6.09%
19.40%
6.68%
10.48%
9.51%
17.05%
19.19%
17.82%
19.42%
4.59%
6.62%
13.02%
1.90%
12.81%
20.55%
6.29%
4.18%
10.73%
21.28%
8.20%
4.30%
16.03%
0.82%
13.92%
2.48%

6.51%
6.51%
6.41%
4.72%
6.70%
6.69%
5.04%
4.11%
4.55%
4.76%
5.39%
6.33%
6.63%
5.23%
6.42%
5.21%
6.61%
4.47%
6.57%
5.41%
6.37%
4.18%
3.67%
3.73%
4.06%
6.72%
4.71%
4.38%
6.91%
4.83%
3.61%
6.60%
4.35%
6.28%
3.57%
4.63%
6.74%
3.81%
6.98%
4.77%
4.43%

12.08%
13.80%
28.73%
18.51%
20.62%
30.36%
29.14%
50.52%
76.82%
21.83%
14.37%
21.67%
14.72%
54.73%
16.53%
21.83%
12.68%
36.02%
36.15%
34.35%
16.20%
9.61%
31.57%
40.00%
25.91%
4.00%
51.08%
14.89%
32.53%
35.52%
7.87%
60.96%
34.18%
16.86%
32.97%
34.21%
12.18%
45.98%
27.02%
26.91%
85.07%

8.48%
7.94%
8.88%
8.24%
8.51%
8.10%
6.44%
6.02%
5.41%
6.74%
8.41%
8.62%
7.21%
6.79%
7.79%
6.77%
7.83%
8.89%
9.78%
8.03%
7.79%
6.96%
6.38%
6.95%
6.13%
8.20%
5.89%
7.68%
8.55%
7.37%
7.71%
7.63%
6.18%
9.01%
6.52%
7.98%
8.33%
5.23%
8.97%
7.46%
4.80%

5.04%
6.04%
5.04%
7.04%
6.04%
4.04%
5.04%
5.54%
6.04%
5.54%
5.04%
5.04%
7.04%
6.04%
7.04%
6.04%
7.04%
7.04%
5.04%
5.54%
6.04%
7.04%
6.04%
5.04%
4.54%
5.04%
5.54%
4.04%
5.04%

20.51%
3.00%
8.72%
8.56%
8.81%
13.34%
15.17%
19.23%
21.97%
16.18%
25.03%
22.83%
9.80%
18.90%
15.21%
7.30%
5.13%
4.99%
19.82%
14.13%
11.54%
6.90%
8.40%
18.93%
14.23%
21.21%
27.93%
29.93%
14.52%

4.01%
5.86%
4.60%
6.44%
5.51%
3.50%
4.28%
4.47%
4.71%
4.64%
3.78%
3.89%
6.35%
4.90%
5.97%
5.60%
6.68%
6.69%
4.04%
4.76%
5.34%
6.55%
5.53%
4.09%
3.89%
3.97%
3.99%
2.83%
4.31%

19.15%
19.94%
14.75%
37.33%
20.08%
27.80%
21.61%
36.51%
18.15%
30.47%
26.26%
36.25%
4.82%
27.43%
52.33%
11.52%
14.51%
39.52%
7.31%
31.46%
51.25%
9.72%
41.60%
98.16%
17.24%
17.19%
43.97%
40.95%
36.67%

7.59%
7.57%
6.33%
8.70%
8.75%
5.20%
6.66%
7.22%
7.72%
7.00%
6.84%
5.94%
8.10%
7.13%
7.59%
8.61%
8.93%
9.01%
6.96%
7.66%
5.88%
8.55%
6.82%
4.12%
7.07%
7.37%
6.73%
4.61%
5.87%

6.04%

10.32%

5.42%

42.62%

6.94%