SCHL
Scholastic Corp
Price:  
18.87 
USD
Volume:  
286,417.00
United States | Media
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SCHL WACC - Weighted Average Cost of Capital

The WACC of Scholastic Corp (SCHL) is 8.4%.

The Cost of Equity of Scholastic Corp (SCHL) is 8.50%.
The Cost of Debt of Scholastic Corp (SCHL) is 6.10%.

Range Selected
Cost of equity 7.10% - 9.90% 8.50%
Tax rate 24.40% - 31.20% 27.80%
Cost of debt 4.50% - 7.70% 6.10%
WACC 7.0% - 9.8% 8.4%
WACC

SCHL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.90%
Tax rate 24.40% 31.20%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.50% 7.70%
After-tax WACC 7.0% 9.8%
Selected WACC 8.4%

SCHL'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 SCHL:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.