KBAL
Kimball International Inc
Price:  
12.3 
USD
Volume:  
1,242,020
United States | Commercial Services & Supplies

KBAL WACC - Weighted Average Cost of Capital

The WACC of Kimball International Inc (KBAL) is 12.8%.

The Cost of Equity of Kimball International Inc (KBAL) is 8.8%.
The Cost of Debt of Kimball International Inc (KBAL) is 56.7%.

RangeSelected
Cost of equity7.4% - 10.2%8.8%
Tax rate25.7% - 31.0%28.35%
Cost of debt4.5% - 108.9%56.7%
WACC6.8% - 18.8%12.8%
WACC

KBAL WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.760.95
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.2%
Tax rate25.7%31.0%
Debt/Equity ratio
0.150.15
Cost of debt4.5%108.9%
After-tax WACC6.8%18.8%
Selected WACC12.8%

KBAL WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.580.84
Relevered beta0.640.93
Adjusted relevered beta0.760.95

KBAL'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 KBAL:

cost_of_equity (8.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + 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.