ENR
Energizer Holdings Inc
Price:  
23.28 
USD
Volume:  
847,903.00
United States | Household Products
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ENR WACC - Weighted Average Cost of Capital

The WACC of Energizer Holdings Inc (ENR) is 6.5%.

The Cost of Equity of Energizer Holdings Inc (ENR) is 10.75%.
The Cost of Debt of Energizer Holdings Inc (ENR) is 5.65%.

Range Selected
Cost of equity 7.60% - 13.90% 10.75%
Tax rate 22.50% - 25.80% 24.15%
Cost of debt 4.30% - 7.00% 5.65%
WACC 4.8% - 8.2% 6.5%
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 0.81 1.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 13.90%
Tax rate 22.50% 25.80%
Debt/Equity ratio 1.94 1.94
Cost of debt 4.30% 7.00%
After-tax WACC 4.8% 8.2%
Selected WACC 6.5%

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 (10.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.81) + 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.