CMCO
Columbus McKinnon Corp
Price:  
16.52 
USD
Volume:  
317,456.00
United States | Machinery
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CMCO WACC - Weighted Average Cost of Capital

The WACC of Columbus McKinnon Corp (CMCO) is 8.7%.

The Cost of Equity of Columbus McKinnon Corp (CMCO) is 12.90%.
The Cost of Debt of Columbus McKinnon Corp (CMCO) is 6.75%.

Range Selected
Cost of equity 11.30% - 14.50% 12.90%
Tax rate 22.80% - 23.40% 23.10%
Cost of debt 6.00% - 7.50% 6.75%
WACC 7.7% - 9.7% 8.7%
WACC

CMCO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.63 1.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.30% 14.50%
Tax rate 22.80% 23.40%
Debt/Equity ratio 1.18 1.18
Cost of debt 6.00% 7.50%
After-tax WACC 7.7% 9.7%
Selected WACC 8.7%

CMCO'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 CMCO:

cost_of_equity (12.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.63) + 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.