ENR
Energizer Holdings Inc
Price:  
28.03 
USD
Volume:  
667,071.00
United States | Household Products
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ENR WACC - Weighted Average Cost of Capital

The WACC of Energizer Holdings Inc (ENR) is 5.1%.

The Cost of Equity of Energizer Holdings Inc (ENR) is 6.90%.
The Cost of Debt of Energizer Holdings Inc (ENR) is 5.20%.

Range Selected
Cost of equity 5.50% - 8.30% 6.90%
Tax rate 22.50% - 25.80% 24.15%
Cost of debt 4.30% - 6.10% 5.20%
WACC 4.2% - 6.0% 5.1%
WACC

ENR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.36 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.30%
Tax rate 22.50% 25.80%
Debt/Equity ratio 1.55 1.55
Cost of debt 4.30% 6.10%
After-tax WACC 4.2% 6.0%
Selected WACC 5.1%

ENR'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 ENR:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.36) + 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.