SHYF
Shyft Group Inc
Price:  
12.54 
USD
Volume:  
159,843.00
United States | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SHYF WACC - Weighted Average Cost of Capital

The WACC of Shyft Group Inc (SHYF) is 9.5%.

The Cost of Equity of Shyft Group Inc (SHYF) is 9.70%.
The Cost of Debt of Shyft Group Inc (SHYF) is 11.05%.

Range Selected
Cost of equity 8.50% - 10.90% 9.70%
Tax rate 19.20% - 22.50% 20.85%
Cost of debt 9.70% - 12.40% 11.05%
WACC 8.3% - 10.6% 9.5%
WACC

SHYF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 10.90%
Tax rate 19.20% 22.50%
Debt/Equity ratio 0.3 0.3
Cost of debt 9.70% 12.40%
After-tax WACC 8.3% 10.6%
Selected WACC 9.5%

SHYF'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 SHYF:

cost_of_equity (9.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.