CACI
CACI International Inc
Price:  
463.17 
USD
Volume:  
434,666.00
United States | Professional Services
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CACI WACC - Weighted Average Cost of Capital

The WACC of CACI International Inc (CACI) is 7.1%.

The Cost of Equity of CACI International Inc (CACI) is 7.60%.
The Cost of Debt of CACI International Inc (CACI) is 4.45%.

Range Selected
Cost of equity 6.50% - 8.70% 7.60%
Tax rate 19.70% - 20.20% 19.95%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.1% - 8.1% 7.1%
WACC

CACI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.70%
Tax rate 19.70% 20.20%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 4.90%
After-tax WACC 6.1% 8.1%
Selected WACC 7.1%

CACI'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 CACI:

cost_of_equity (7.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.