Quick Answer: What Is Amazon’s Cost Of Equity?

Amazon.com WACC % As of today (2020-05-09), Amazon.com’s weighted average cost of capital is 8.04%.

Amazon.com’s ROIC % is 8.99% (calculated using TTM income statement data).

Amazon.com generates higher returns on investment than it costs the company to raise the capital needed for that investment.

What is the formula for cost of equity?

It is commonly computed using the capital asset pricing model formula: Cost of equity = Risk free rate of return + Premium expected for risk. Cost of equity = Risk free rate of return + Beta × (market rate of return – risk free rate of return)

What is Amazon’s WACC?

WACC for Amazon.com, Inc. Amazon.com’s wacc is 8.5%.

How much cash does Amazon have on its balance sheet?

Amazon.com, Inc. Common Stock (AMZN) Financials

Period Ending:12/31/201912/31/2018
Current Assets
Cash and Cash Equivalents$36,092,000$31,750,000
Short-Term Investments$18,929,000$9,500,000
Net Receivables$20,816,000$16,677,000

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How much debt does Amazon have?

Amazon increased its U.S. government and agency securities holdings by a record $6.8 billion in 2018, ending the year with $11.7 billion worth of the debt, the most ever, according to the company’s annual report.