OSK
Oshkosh Corp
Price:  
89.39 
USD
Volume:  
968,305.00
United States | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

OSK WACC - Weighted Average Cost of Capital

The WACC of Oshkosh Corp (OSK) is 8.8%.

The Cost of Equity of Oshkosh Corp (OSK) is 9.50%.
The Cost of Debt of Oshkosh Corp (OSK) is 6.20%.

Range Selected
Cost of equity 8.00% - 11.00% 9.50%
Tax rate 23.60% - 28.40% 26.00%
Cost of debt 4.80% - 7.60% 6.20%
WACC 7.3% - 10.2% 8.8%
WACC

OSK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.9 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 11.00%
Tax rate 23.60% 28.40%
Debt/Equity ratio 0.18 0.18
Cost of debt 4.80% 7.60%
After-tax WACC 7.3% 10.2%
Selected WACC 8.8%

OSK'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 OSK:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.9) + 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.