ARCW WACC - Weighted Average Cost of Capital
The WACC of ARC Group Worldwide Inc (ARCW) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.9% - 7.8% | 6.85% |
| Tax rate | 14.5% - 22.9% | 18.7% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 5.6% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.44 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 7.8% |
| Tax rate | 14.5% | 22.9% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 5.6% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARCW | ARC Group Worldwide Inc | 0.4 | 0.28 | 0.21 |
| DLPX | Delphax Technologies Inc | 44.52 | 0.02 | 0 |
| GHM | Graham Corp | 0 | 2.03 | 2.03 |
| GTEC | Greenland Technologies Holding Corp | 0.58 | 1.71 | 1.14 |
| JKSM | Jacksam Corp | 3.93 | -1.03 | -0.24 |
| NEWA | Newater Technology Inc | 0.61 | 0.88 | 0.58 |
| PFIN | P&F Industries Inc | 0.18 | 0.27 | 0.24 |
| REKO.V | Reko International Group Inc | 0.54 | -0.35 | -0.24 |
| VJET | Voxeljet AG | 2.89 | 0.77 | 0.22 |
| Low | High | |
| Unlevered beta | 0.21 | 0.23 |
| Relevered beta | 0.16 | 0.3 |
| Adjusted relevered beta | 0.44 | 0.53 |
ARCW'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 ARCW:
cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.44) + 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.