ATKR
Atkore Inc
Price:  
65.10 
USD
Volume:  
285,225.00
United States | Electrical Equipment
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Atkore WACC - Weighted Average Cost of Capital

The WACC of Atkore Inc (ATKR) is 8.9%.

The Cost of Equity of Atkore Inc (ATKR) is 10.75%.
The Cost of Debt of Atkore Inc (ATKR) is 4.75%.

Range Selected
Cost of equity 9.30% - 12.20% 10.75%
Tax rate 22.30% - 24.30% 23.30%
Cost of debt 4.70% - 4.80% 4.75%
WACC 7.9% - 9.9% 8.9%
WACC

Atkore WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.19 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.20%
Tax rate 22.30% 24.30%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.70% 4.80%
After-tax WACC 7.9% 9.9%
Selected WACC 8.9%

Atkore'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 Atkore:

cost_of_equity (10.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.19) + 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.