PACK
Ranpak Holdings Corp
Price:  
3.33 
USD
Volume:  
1,444,061.00
United States | Containers & Packaging
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PACK WACC - Weighted Average Cost of Capital

The WACC of Ranpak Holdings Corp (PACK) is 6.9%.

The Cost of Equity of Ranpak Holdings Corp (PACK) is 10.15%.
The Cost of Debt of Ranpak Holdings Corp (PACK) is 5.50%.

Range Selected
Cost of equity 8.70% - 11.60% 10.15%
Tax rate 11.80% - 18.80% 15.30%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.6% - 8.1% 6.9%
WACC

PACK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.04 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.60%
Tax rate 11.80% 18.80%
Debt/Equity ratio 1.45 1.45
Cost of debt 4.00% 7.00%
After-tax WACC 5.6% 8.1%
Selected WACC 6.9%

PACK'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 PACK:

cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.04) + 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.