AIMC
Altra Industrial Motion Corp
Price:  
61.98 
USD
Volume:  
1,844,120.00
United States | Machinery
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AIMC WACC - Weighted Average Cost of Capital

The WACC of Altra Industrial Motion Corp (AIMC) is 8.8%.

The Cost of Equity of Altra Industrial Motion Corp (AIMC) is 10.25%.
The Cost of Debt of Altra Industrial Motion Corp (AIMC) is 4.55%.

Range Selected
Cost of equity 8.50% - 12.00% 10.25%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 5.10% 4.55%
WACC 7.4% - 10.3% 8.8%
WACC

AIMC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.01 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 12.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.00% 5.10%
After-tax WACC 7.4% 10.3%
Selected WACC 8.8%

AIMC'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 AIMC:

cost_of_equity (10.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.01) + 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.