SAIA
Saia Inc
Price:  
259.97 
USD
Volume:  
741,321.00
United States | Road & Rail
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SAIA WACC - Weighted Average Cost of Capital

The WACC of Saia Inc (SAIA) is 8.8%.

The Cost of Equity of Saia Inc (SAIA) is 8.85%.
The Cost of Debt of Saia Inc (SAIA) is 9.85%.

Range Selected
Cost of equity 7.70% - 10.00% 8.85%
Tax rate 23.80% - 23.90% 23.85%
Cost of debt 4.50% - 15.20% 9.85%
WACC 7.6% - 10.1% 8.8%
WACC

SAIA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.83 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.00%
Tax rate 23.80% 23.90%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.50% 15.20%
After-tax WACC 7.6% 10.1%
Selected WACC 8.8%

SAIA'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 SAIA:

cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.83) + 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.