MSA
MSA Safety Inc
Price:  
165.12 
USD
Volume:  
271,015.00
United States | Commercial Services & Supplies
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MSA WACC - Weighted Average Cost of Capital

The WACC of MSA Safety Inc (MSA) is 8.2%.

The Cost of Equity of MSA Safety Inc (MSA) is 8.60%.
The Cost of Debt of MSA Safety Inc (MSA) is 4.90%.

Range Selected
Cost of equity 7.20% - 10.00% 8.60%
Tax rate 24.40% - 25.00% 24.70%
Cost of debt 4.60% - 5.20% 4.90%
WACC 6.9% - 9.5% 8.2%
WACC

MSA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.72 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.00%
Tax rate 24.40% 25.00%
Debt/Equity ratio 0.08 0.08
Cost of debt 4.60% 5.20%
After-tax WACC 6.9% 9.5%
Selected WACC 8.2%

MSA'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 MSA:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.72) + 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.