Acco WACC - Weighted Average Cost of Capital

The WACC of ACCO Brands Corp (ACCO) is 7.4%.

The Cost of Equity of ACCO Brands Corp (ACCO) is 15.70%.

The Cost of Debt of ACCO Brands Corp (ACCO) is 5.80%.

	Range	Selected
Cost of equity	13.10% - 18.30%	15.70%
Tax rate	19.20% - 39.20%	29.20%
Cost of debt	4.60% - 7.00%	5.80%
WACC	6.4% - 8.3%	7.4%

WACC

Acco WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	2.01	2.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	18.30%

Tax rate	19.20%	39.20%
Debt/Equity ratio	2.48	2.48
Cost of debt	4.60%	7.00%

After-tax WACC	6.4%	8.3%


Selected WACC	7.4%

Acco's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for Acco:

cost_of_equity (15.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.01) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.