CSWI
CSW Industrials Inc
Price:  
300.91 
USD
Volume:  
192,411.00
United States | Building Products
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CSWI WACC - Weighted Average Cost of Capital

The WACC of CSW Industrials Inc (CSWI) is 8.1%.

The Cost of Equity of CSW Industrials Inc (CSWI) is 8.20%.
The Cost of Debt of CSW Industrials Inc (CSWI) is 5.90%.

Range Selected
Cost of equity 6.80% - 9.60% 8.20%
Tax rate 22.40% - 24.00% 23.20%
Cost of debt 4.50% - 7.30% 5.90%
WACC 6.7% - 9.5% 8.1%
WACC

CSWI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.64 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.60%
Tax rate 22.40% 24.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.50% 7.30%
After-tax WACC 6.7% 9.5%
Selected WACC 8.1%

CSWI'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 CSWI:

cost_of_equity (8.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.64) + 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.