ENTG WACC - Weighted Average Cost of Capital
The WACC of Entegris Inc (ENTG) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.8% - 11.7% | 9.75% |
| Tax rate | 12.3% - 15.0% | 13.65% |
| Cost of debt | 7.0% - 7.8% | 7.4% |
| WACC | 7.4% - 10.4% | 8.9% |
| 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 | 7.8% | 11.7% |
| Tax rate | 12.3% | 15.0% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 7.0% | 7.8% |
| After-tax WACC | 7.4% | 10.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENTG | Entegris Inc | 0.32 | 1.94 | 1.52 |
| ACMR | ACM Research Inc | 0.11 | 1.25 | 1.14 |
| ASYS | Amtech Systems Inc | 0 | 0.52 | 0.52 |
| BRKS | Brooks Automation Inc | 0.01 | 1.74 | 1.73 |
| CCMP | CMC Materials Inc | 0.18 | 1.11 | 0.96 |
| DQ | Daqo New Energy Corp | 0.01 | 0.55 | 0.55 |
| ENPH | Enphase Energy Inc | 0.24 | 0.38 | 0.32 |
| HYSR | Sunhydrogen Inc | 0 | 0.34 | 0.34 |
| SEDG | Solaredge Technologies Inc | 0.62 | 0.99 | 0.65 |
| VECO | Veeco Instruments Inc | 0.22 | 1.52 | 1.28 |
| Low | High | |
| Unlevered beta | 0.61 | 1.03 |
| Relevered beta | 0.78 | 1.31 |
| Adjusted relevered beta | 0.85 | 1.21 |
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.