SUP
Superior Industries International Inc
Price:  
0.32 
USD
Volume:  
577,198
United States | Auto Components

SUP WACC - Weighted Average Cost of Capital

The WACC of Superior Industries International Inc (SUP) is 11.1%.

The Cost of Equity of Superior Industries International Inc (SUP) is 31.7%.
The Cost of Debt of Superior Industries International Inc (SUP) is 16%.

RangeSelected
Cost of equity5.9% - 57.5%31.7%
Tax rate24.8% - 35.9%30.35%
Cost of debt8.1% - 23.9%16%
WACC6.1% - 16.1%11.1%
WACC

SUP WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.459.4
Additional risk adjustments0.0%0.5%
Cost of equity5.9%57.5%
Tax rate24.8%35.9%
Debt/Equity ratio
51.1151.11
Cost of debt8.1%23.9%
After-tax WACC6.1%16.1%
Selected WACC11.1%

SUP'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 SUP:

cost_of_equity (31.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.