AVNT
Avient Corp
Price:  
33.08 
USD
Volume:  
790,508
United States | Chemicals

Avient WACC - Weighted Average Cost of Capital

The WACC of Avient Corp (AVNT) is 7.5%.

The Cost of Equity of Avient Corp (AVNT) is 9.85%.
The Cost of Debt of Avient Corp (AVNT) is 5%.

RangeSelected
Cost of equity8.4% - 11.3%9.85%
Tax rate19.5% - 24.6%22.05%
Cost of debt5.0% - 5.0%5%
WACC6.7% - 8.3%7.5%
WACC

Avient WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.991.15
Additional risk adjustments0.0%0.5%
Cost of equity8.4%11.3%
Tax rate19.5%24.6%
Debt/Equity ratio
0.660.66
Cost of debt5.0%5.0%
After-tax WACC6.7%8.3%
Selected WACC7.5%

Avient'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 Avient:

cost_of_equity (9.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + 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.