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Booz Allen Hamilton Holding Corporation (BAH) — WACC Analysis

WACC Breakdown

Booz Allen Hamilton Holding Corporation (BAH) has a weighted average cost of capital (WACC) of 5.8%. The cost of equity is 7.6%, derived from a beta of 0.43 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 70.7% equity and 29.3% debt.

Interpretation

A WACC of 5.8% suggests that the market views Booz Allen Hamilton Holding Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare BAH's WACC of 5.8% against industry peers to gauge its relative financing costs. A beta of 0.43 reflects the stock's volatility relative to the broader market.

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VALUATION

BAH WACC: 5.83% for Booz Allen Hamilton Holding Corporation

Current inputs imply a 7.58% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Booz Allen Hamilton Holding Corporation Common Stock (BAH) WACC Results
Weighted Average Cost of Capital
5.83%
Cost of Equity
7.58%
Risk-Free Rate4.96%
Beta0.43
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 70.74%($9515.74M)
Debt: 29.26%($3936.00M)
Equity Component
5.36%
70.74% × 7.58%
Debt Component
0.46%
29.26% × 1.58%

Booz Allen Hamilton Holding Corporation (BAH) WACC in context

Booz Allen Hamilton Holding Corporation (BAH) currently screens with an estimated WACC of 5.83%. That blends a 7.58% cost of equity, a 2.00% pre-tax cost of debt, and a 70.74% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What BAH WACC implies

A 5.83% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates BAH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.43 and equity accounts for 70.74% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.