Morgan Stanley (MS) WACC Analysis

As of April 4, 2026, Morgan Stanley (MS) carries a Weighted Average Cost of Capital (WACC) of 10.9%. WACC reflects the blended rate Morgan Stanley must pay to both equity and debt holders.

Within that, the cost of equity is 8.3%, the cost of debt is 5.1%, and the effective tax rate is 22.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.97 – 1.16
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 3.35

What It Means for Investors

With a selected WACC of 10.9%, Morgan Stanley must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.