EGLE
Eagle Bulk Shipping Inc
Price:  
26.96 
USD
Volume:  
1.00
United States | Marine
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EGLE WACC - Weighted Average Cost of Capital

The WACC of Eagle Bulk Shipping Inc (EGLE) is 8.3%.

The Cost of Equity of Eagle Bulk Shipping Inc (EGLE) is 7.55%.
The Cost of Debt of Eagle Bulk Shipping Inc (EGLE) is 13.10%.

Range Selected
Cost of equity 5.40% - 9.70% 7.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.30% - 20.90% 13.10%
WACC 4.9% - 11.8% 8.3%
WACC

EGLE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.34 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 9.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.63 0.63
Cost of debt 5.30% 20.90%
After-tax WACC 4.9% 11.8%
Selected WACC 8.3%

EGLE'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 EGLE:

cost_of_equity (7.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.