PATI
Patriot Transportation Holding Inc
Price:  
16.26 
USD
Volume:  
19,376.00
United States | Road & Rail
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PATI WACC - Weighted Average Cost of Capital

The WACC of Patriot Transportation Holding Inc (PATI) is 5.7%.

The Cost of Equity of Patriot Transportation Holding Inc (PATI) is 8.05%.
The Cost of Debt of Patriot Transportation Holding Inc (PATI) is 4.50%.

Range Selected
Cost of equity 6.00% - 10.10% 8.05%
Tax rate 24.50% - 25.20% 24.85%
Cost of debt 4.50% - 4.50% 4.50%
WACC 4.7% - 6.7% 5.7%
WACC

PATI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.47 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 10.10%
Tax rate 24.50% 25.20%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 4.7% 6.7%
Selected WACC 5.7%

PATI'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 PATI:

cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.47) + 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.