MTRX
Matrix Service Co
Price:  
15.82 
USD
Volume:  
189,442.00
United States | Construction & Engineering
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MTRX WACC - Weighted Average Cost of Capital

The WACC of Matrix Service Co (MTRX) is 9.9%.

The Cost of Equity of Matrix Service Co (MTRX) is 13.25%.
The Cost of Debt of Matrix Service Co (MTRX) is 7.00%.

Range Selected
Cost of equity 11.40% - 15.10% 13.25%
Tax rate 6.00% - 9.60% 7.80%
Cost of debt 7.00% - 7.00% 7.00%
WACC 9.0% - 10.7% 9.9%
WACC

MTRX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.64 1.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 15.10%
Tax rate 6.00% 9.60%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 9.0% 10.7%
Selected WACC 9.9%

MTRX'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 MTRX:

cost_of_equity (13.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.64) + 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.