Alteryx WACC - Weighted Average Cost of Capital
The WACC of Alteryx Inc (AYX) is 8.5%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.4% | 9.75% |
| Tax rate | 4.1% - 8.3% | 6.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.0% - 10.1% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.92 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.4% |
| Tax rate | 4.1% | 8.3% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.0% | 10.1% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AYX | Alteryx Inc | 0.35 | 1.31 | 0.98 |
| BL | Blackline Inc | 0.25 | 0.89 | 0.72 |
| BLKB | Blackbaud Inc | 0.35 | 0.58 | 0.44 |
| BOX | Box Inc | 0.13 | 0.63 | 0.56 |
| ENV | Envestnet Inc | 0.25 | 0.08 | 0.07 |
| INTU | Intuit Inc | 0.03 | 0.59 | 0.58 |
| MDLA | Medallia Inc | 0.08 | 1.07 | 0.99 |
| MSTR | MicroStrategy Inc | 0.07 | 1.09 | 1.02 |
| QTWO | Q2 Holdings Inc | 0.08 | 1.5 | 1.39 |
| WK | Workiva Inc | 0.21 | 1.1 | 0.91 |
| Low | High | |
| Unlevered beta | 0.66 | 0.94 |
| Relevered beta | 0.88 | 1.25 |
| Adjusted relevered beta | 0.92 | 1.17 |
Alteryx'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 Alteryx:
cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.92) + 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.