EPAC
Enerpac Tool Group Corp
Price:  
38.50 
USD
Volume:  
410,854.00
United States | Machinery
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EPAC WACC - Weighted Average Cost of Capital

The WACC of Enerpac Tool Group Corp (EPAC) is 9.1%.

The Cost of Equity of Enerpac Tool Group Corp (EPAC) is 9.55%.
The Cost of Debt of Enerpac Tool Group Corp (EPAC) is 4.30%.

Range Selected
Cost of equity 8.30% - 10.80% 9.55%
Tax rate 12.00% - 16.80% 14.40%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.9% - 10.2% 9.1%
WACC

EPAC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.96 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.80%
Tax rate 12.00% 16.80%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 4.60%
After-tax WACC 7.9% 10.2%
Selected WACC 9.1%

EPAC'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 EPAC:

cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.96) + 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.