CASY
Caseys General Stores Inc
Price:  
458.65 
USD
Volume:  
182,834.00
United States | Food & Staples Retailing
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CASY WACC - Weighted Average Cost of Capital

The WACC of Caseys General Stores Inc (CASY) is 6.4%.

The Cost of Equity of Caseys General Stores Inc (CASY) is 6.75%.
The Cost of Debt of Caseys General Stores Inc (CASY) is 4.30%.

Range Selected
Cost of equity 5.60% - 7.90% 6.75%
Tax rate 23.00% - 23.30% 23.15%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.4% - 7.5% 6.4%
WACC

CASY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.38 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.90%
Tax rate 23.00% 23.30%
Debt/Equity ratio 0.1 0.1
Cost of debt 4.00% 4.60%
After-tax WACC 5.4% 7.5%
Selected WACC 6.4%

CASY'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 CASY:

cost_of_equity (6.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.38) + 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.