SITE
SiteOne Landscape Supply Inc
Price:  
114.11 
USD
Volume:  
737,656.00
United States | Trading Companies & Distributors
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SITE WACC - Weighted Average Cost of Capital

The WACC of SiteOne Landscape Supply Inc (SITE) is 9.6%.

The Cost of Equity of SiteOne Landscape Supply Inc (SITE) is 10.10%.
The Cost of Debt of SiteOne Landscape Supply Inc (SITE) is 5.35%.

Range Selected
Cost of equity 8.90% - 11.30% 10.10%
Tax rate 20.60% - 21.90% 21.25%
Cost of debt 4.90% - 5.80% 5.35%
WACC 8.5% - 10.7% 9.6%
WACC

SITE 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 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.30%
Tax rate 20.60% 21.90%
Debt/Equity ratio 0.1 0.1
Cost of debt 4.90% 5.80%
After-tax WACC 8.5% 10.7%
Selected WACC 9.6%

SITE'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 SITE:

cost_of_equity (10.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.