NPO
EnPro Industries Inc
Price:  
214.71 
USD
Volume:  
200,734.00
United States | Machinery
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NPO WACC - Weighted Average Cost of Capital

The WACC of EnPro Industries Inc (NPO) is 8.6%.

The Cost of Equity of EnPro Industries Inc (NPO) is 9.35%.
The Cost of Debt of EnPro Industries Inc (NPO) is 4.80%.

Range Selected
Cost of equity 8.00% - 10.70% 9.35%
Tax rate 18.90% - 46.30% 32.60%
Cost of debt 4.30% - 5.30% 4.80%
WACC 7.5% - 9.7% 8.6%
WACC

NPO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.91 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.70%
Tax rate 18.90% 46.30%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.30% 5.30%
After-tax WACC 7.5% 9.7%
Selected WACC 8.6%

NPO'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 NPO:

cost_of_equity (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.91) + 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.