SPXC
SPX Corp
Price:  
152.45 
USD
Volume:  
190,131.00
United States | Machinery
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SPXC WACC - Weighted Average Cost of Capital

The WACC of SPX Corp (SPXC) is 8.5%.

The Cost of Equity of SPX Corp (SPXC) is 8.85%.
The Cost of Debt of SPX Corp (SPXC) is 5.40%.

Range Selected
Cost of equity 7.70% - 10.00% 8.85%
Tax rate 18.80% - 21.50% 20.15%
Cost of debt 4.90% - 5.90% 5.40%
WACC 7.4% - 9.5% 8.5%
WACC

SPXC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.84 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.00%
Tax rate 18.80% 21.50%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.90% 5.90%
After-tax WACC 7.4% 9.5%
Selected WACC 8.5%

SPXC'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 SPXC:

cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.