NWL
Newell Brands Inc
Price:  
5.26 
USD
Volume:  
8,423,922.00
United States | Household Durables
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NWL WACC - Weighted Average Cost of Capital

The WACC of Newell Brands Inc (NWL) is 7.9%.

The Cost of Equity of Newell Brands Inc (NWL) is 12.70%.
The Cost of Debt of Newell Brands Inc (NWL) is 7.30%.

Range Selected
Cost of equity 9.80% - 15.60% 12.70%
Tax rate 21.30% - 24.30% 22.80%
Cost of debt 5.50% - 9.10% 7.30%
WACC 6.1% - 9.7% 7.9%
WACC

NWL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.28 1.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 15.60%
Tax rate 21.30% 24.30%
Debt/Equity ratio 2.1 2.1
Cost of debt 5.50% 9.10%
After-tax WACC 6.1% 9.7%
Selected WACC 7.9%

NWL'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 NWL:

cost_of_equity (12.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.28) + 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.