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Technology · Consumer Electronics

Apple Inc. (AAPL) — WACC

The weighted average cost of capital for Apple Inc. at 2026-06-30, calculated using the Baratelli Institute methodology and sourced to the most recent public filings. The number below is a practitioner reference — free to use, free to cite, refreshed quarterly.

Snapshot: 2026-06-30 · Next refresh: 2026-09-30 · Methodology →

WACC
10.4%
Blended cost of capital
Cost of Equity (Ke)
10.9%
Rf + β × ERP
Beta
1.20
5-yr weekly, Blume-adjusted
After-tax Kd
4.0%
Pre-tax × (1 − t)

The Calculation, Walked

ComponentValueSource / Assumption
Risk-free rate (Rf)4.25%10-year US Treasury yield at snapshot date
Equity risk premium (ERP)5.55%Damodaran implied ERP, June 2026 update
Beta (β)1.205-year weekly regression vs S&P 500, Blume-adjusted
Cost of equity (Ke)10.9%CAPM: Rf + β × ERP = 4.25% + 1.20 × 5.55%
Pre-tax cost of debt (Kd)4.80%Current-yield estimate on senior unsecured debt at issuer's rating
Marginal tax rate (t)16.0%Blended federal + state; company-specific effective rate
After-tax cost of debt4.0%Kd × (1 − t) = 4.80% × 84.0%
Equity weight (E/V)92.0%Market value of equity ÷ total capitalization
Debt weight (D/V)8.0%Market value of debt ÷ total capitalization
WACC10.4%(E/V × Ke) + (D/V × Kd after-tax)

Practitioner Notes

Apple's effective tax rate runs materially below the US statutory rate because of foreign-earnings mix and prior years' IP holding structures. Use the effective rate, not the statutory rate, for cost of debt shielding. Beta has trended up as Apple reweighted toward services with different revenue seasonality. Practitioner note on ownership: Apple has been Berkshire Hathaway's largest equity position for years. Buffett's declared ‘forever’ hold effectively removes a meaningful share count from float, which stabilizes the shareholder base and arguably lowers the effective equity risk premium relative to a pure regression beta.

Full WACC calculator plus 25 other Wall Street templates are in the Baratelli Financial Modeling Toolkit — $99.

Where This Number Fits

Use this WACC as the discount rate in an enterprise-value DCF, the hurdle rate for value-based management analysis of AAPL, or the cost-of-capital anchor when comparing AAPL to peers in the Consumer Electronics industry. For equity-only valuation frameworks (dividend discount models, residual income), use the cost of equity Ke of 10.9% instead of the blended WACC.

The methodology page walks each input in more depth and explains where reasonable practitioners disagree. If your own model uses different inputs, the companion Excel workbook exposes every formula so you can substitute directly.

Cite This Page

Baratelli Institute. “Apple Inc. (AAPL) — WACC.” Baratelli WACC Reference. Snapshot date 2026-06-30.
https://baratelliinstitute.com/wacc/aapl.html

Related

Berkshire Read — Apple is Berkshire's largest holding
The practitioner reference on Berkshire Hathaway. Apple's WACC matters to any Berkshire watcher because Apple is the single-largest position in the portfolio.

Technology sector peers in this reference: MSFT (Microsoft Corporation), GOOGL (Alphabet Inc.), NVDA (NVIDIA Corporation), CDNS (Cadence Design Systems, Inc.), SNPS (Synopsys, Inc.).

All companies in the reference: The full WACC Reference Library (73 companies).

The methodology: How the numbers are calculated.

The applied companion: The Baratelli CFO & Controller's Guide covers WACC methodology within a full controllership framework.

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