ACDC WACC - Weighted Average Cost of Capital

The WACC of ProFrac Holding Corp (ACDC) is 14.9%.

The Cost of Equity of ProFrac Holding Corp (ACDC) is 12.50%.

The Cost of Debt of ProFrac Holding Corp (ACDC) is 17.95%.

	Range	Selected
Cost of equity	10.50% - 14.50%	12.50%
Tax rate	1.40% - 2.30%	1.85%
Cost of debt	12.00% - 23.90%	17.95%
WACC	11.2% - 18.6%	14.9%

WACC

ACDC WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.45	1.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	14.50%

Tax rate	1.40%	2.30%
Debt/Equity ratio	0.87	0.87
Cost of debt	12.00%	23.90%

After-tax WACC	11.2%	18.6%


Selected WACC	14.9%

ACDC'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 ACDC:

cost_of_equity (12.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.45) + 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.