Coca-Cola Co (KO) WACC Analysis

As of May 22, 2025, Coca-Cola Co (KO) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Coca-Cola Co must pay to both equity and debt holders.

Within that, the cost of equity is 6.0%, the cost of debt is 4.0%, and the effective tax rate is 18.4%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.46 – 0.5
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.14

What It Means for Investors

With a selected WACC of 6.4%, Coca-Cola Co must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.