ENTG
Entegris Inc
Price:  
82.34 
USD
Volume:  
3,276,884.00
United States | Semiconductors & Semiconductor Equipment
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ENTG WACC - Weighted Average Cost of Capital

The WACC of Entegris Inc (ENTG) is 8.9%.

The Cost of Equity of Entegris Inc (ENTG) is 9.75%.
The Cost of Debt of Entegris Inc (ENTG) is 7.40%.

Range Selected
Cost of equity 7.80% - 11.70% 9.75%
Tax rate 12.30% - 15.00% 13.65%
Cost of debt 7.00% - 7.80% 7.40%
WACC 7.4% - 10.4% 8.9%
WACC

ENTG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.85 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 11.70%
Tax rate 12.30% 15.00%
Debt/Equity ratio 0.32 0.32
Cost of debt 7.00% 7.80%
After-tax WACC 7.4% 10.4%
Selected WACC 8.9%

ENTG'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 ENTG:

cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.85) + 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.