NPO
EnPro Industries Inc
Price:  
195.22 
USD
Volume:  
154,935.00
United States | Machinery
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NPO WACC - Weighted Average Cost of Capital

The WACC of EnPro Industries Inc (NPO) is 8.4%.

The Cost of Equity of EnPro Industries Inc (NPO) is 9.25%.
The Cost of Debt of EnPro Industries Inc (NPO) is 4.80%.

Range Selected
Cost of equity 7.90% - 10.60% 9.25%
Tax rate 18.90% - 46.30% 32.60%
Cost of debt 4.30% - 5.30% 4.80%
WACC 7.3% - 9.6% 8.4%
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 0.87 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.60%
Tax rate 18.90% 46.30%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.30% 5.30%
After-tax WACC 7.3% 9.6%
Selected WACC 8.4%

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 (9.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.87) + 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.