PACK
Ranpak Holdings Corp
Price:  
3.35 
USD
Volume:  
1,102,087.00
United States | Containers & Packaging
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PACK WACC - Weighted Average Cost of Capital

The WACC of Ranpak Holdings Corp (PACK) is 10.5%.

The Cost of Equity of Ranpak Holdings Corp (PACK) is 9.45%.
The Cost of Debt of Ranpak Holdings Corp (PACK) is 13.95%.

Range Selected
Cost of equity 8.20% - 10.70% 9.45%
Tax rate 11.80% - 18.80% 15.30%
Cost of debt 4.00% - 23.90% 13.95%
WACC 5.8% - 15.2% 10.5%
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 0.95 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.70%
Tax rate 11.80% 18.80%
Debt/Equity ratio 1.09 1.09
Cost of debt 4.00% 23.90%
After-tax WACC 5.8% 15.2%
Selected WACC 10.5%

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 (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.95) + 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.