EPAC
Enerpac Tool Group Corp
Price:  
43.23 
USD
Volume:  
214,700.00
United States | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

EPAC WACC - Weighted Average Cost of Capital

The WACC of Enerpac Tool Group Corp (EPAC) is 8.9%.

The Cost of Equity of Enerpac Tool Group Corp (EPAC) is 9.35%.
The Cost of Debt of Enerpac Tool Group Corp (EPAC) is 4.30%.

Range Selected
Cost of equity 8.20% - 10.50% 9.35%
Tax rate 12.00% - 16.80% 14.40%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.9% - 10.0% 8.9%
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 0.95 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.50%
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% 10.0%
Selected WACC 8.9%

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 (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.95) + 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.