SNDR
Schneider National Inc
Price:  
24.72 
USD
Volume:  
689,164.00
United States | Road & Rail
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SNDR WACC - Weighted Average Cost of Capital

The WACC of Schneider National Inc (SNDR) is 9.0%.

The Cost of Equity of Schneider National Inc (SNDR) is 9.65%.
The Cost of Debt of Schneider National Inc (SNDR) is 4.55%.

Range Selected
Cost of equity 8.50% - 10.80% 9.65%
Tax rate 23.80% - 24.60% 24.20%
Cost of debt 4.20% - 4.90% 4.55%
WACC 8.0% - 10.1% 9.0%
WACC

SNDR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 10.80%
Tax rate 23.80% 24.60%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.20% 4.90%
After-tax WACC 8.0% 10.1%
Selected WACC 9.0%

SNDR'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 SNDR:

cost_of_equity (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.