PING
Ping Identity Holding Corp
Price:  
28.5 
USD
Volume:  
3,473,330
United States | Software

PING WACC - Weighted Average Cost of Capital

The WACC of Ping Identity Holding Corp (PING) is 6.6%.

The Cost of Equity of Ping Identity Holding Corp (PING) is 6.85%.
The Cost of Debt of Ping Identity Holding Corp (PING) is 5.9%.

RangeSelected
Cost of equity5.9% - 7.8%6.85%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.8% - 7.0%5.9%
WACC5.6% - 7.5%6.6%
WACC

PING WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.440.52
Additional risk adjustments0.0%0.5%
Cost of equity5.9%7.8%
Tax rate26.2%27.0%
Debt/Equity ratio
0.120.12
Cost of debt4.8%7.0%
After-tax WACC5.6%7.5%
Selected WACC6.6%

PING'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 PING:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.44) + 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.