AGTI
Agiliti Inc
Price:  
10.05 
USD
Volume:  
26,512,200.00
United States | N/A
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Agiliti WACC - Weighted Average Cost of Capital

The WACC of Agiliti Inc (AGTI) is 8.1%.

The Cost of Equity of Agiliti Inc (AGTI) is 8.45%.
The Cost of Debt of Agiliti Inc (AGTI) is 10.25%.

Range Selected
Cost of equity 7.10% - 9.80% 8.45%
Tax rate 16.90% - 28.10% 22.50%
Cost of debt 4.90% - 15.60% 10.25%
WACC 5.8% - 10.4% 8.1%
WACC

Agiliti WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.80%
Tax rate 16.90% 28.10%
Debt/Equity ratio 0.79 0.79
Cost of debt 4.90% 15.60%
After-tax WACC 5.8% 10.4%
Selected WACC 8.1%

Agiliti'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 Agiliti:

cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.