ENR
Energizer Holdings Inc
Price:  
29.54 
USD
Volume:  
779,361.00
United States | Household Products
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ENR WACC - Weighted Average Cost of Capital

The WACC of Energizer Holdings Inc (ENR) is 5.2%.

The Cost of Equity of Energizer Holdings Inc (ENR) is 7.10%.
The Cost of Debt of Energizer Holdings Inc (ENR) is 5.20%.

Range Selected
Cost of equity 5.70% - 8.50% 7.10%
Tax rate 22.50% - 25.80% 24.15%
Cost of debt 4.30% - 6.10% 5.20%
WACC 4.3% - 6.1% 5.2%
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 0.41 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.50%
Tax rate 22.50% 25.80%
Debt/Equity ratio 1.59 1.59
Cost of debt 4.30% 6.10%
After-tax WACC 4.3% 6.1%
Selected WACC 5.2%

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 (7.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.