KOP
Koppers Holdings Inc
Price:  
28.75 
USD
Volume:  
177,708.00
United States | Chemicals
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KOP WACC - Weighted Average Cost of Capital

The WACC of Koppers Holdings Inc (KOP) is 8.1%.

The Cost of Equity of Koppers Holdings Inc (KOP) is 12.95%.
The Cost of Debt of Koppers Holdings Inc (KOP) is 7.25%.

Range Selected
Cost of equity 11.20% - 14.70% 12.95%
Tax rate 28.50% - 29.30% 28.90%
Cost of debt 7.00% - 7.50% 7.25%
WACC 7.4% - 8.9% 8.1%
WACC

KOP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.6 1.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 14.70%
Tax rate 28.50% 29.30%
Debt/Equity ratio 1.64 1.64
Cost of debt 7.00% 7.50%
After-tax WACC 7.4% 8.9%
Selected WACC 8.1%

KOP'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 KOP:

cost_of_equity (12.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.6) + 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.