The WACC of Superior Industries International Inc (SUP) is 11.1%.
Range | Selected | |
Cost of equity | 5.9% - 57.5% | 31.7% |
Tax rate | 24.8% - 35.9% | 30.35% |
Cost of debt | 8.1% - 23.9% | 16% |
WACC | 6.1% - 16.1% | 11.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.45 | 9.4 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 57.5% |
Tax rate | 24.8% | 35.9% |
Debt/Equity ratio | 51.11 | 51.11 |
Cost of debt | 8.1% | 23.9% |
After-tax WACC | 6.1% | 16.1% |
Selected WACC | 11.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SUP | Superior Industries International Inc | 51.11 | -0.13 | 0 |
CAAS | China Automotive Systems Inc | 1.36 | 0.76 | 0.39 |
CXDC | China XD Plastics Company Ltd | 8096.65 | 0.99 | 0 |
FSCR | Federal Screw Works | 1.22 | -0.02 | -0.01 |
KNDI | Kandi Technologies Group Inc | 0.85 | 0.54 | 0.34 |
MPAA | Motorcar Parts of America Inc | 0.65 | 1.45 | 0.99 |
SHLOQ | Shiloh Industries Inc | 115.01 | 0.65 | 0.01 |
SMP | Standard Motor Products Inc | 0.82 | 0.74 | 0.46 |
SRI | Stoneridge Inc | 1.1 | 1.39 | 0.77 |
SYPR | Sypris Solutions Inc | 0.25 | -0.12 | -0.1 |
Low | High | |
Unlevered beta | 0 | 0.36 |
Relevered beta | 0.18 | 13.54 |
Adjusted relevered beta | 0.45 | 9.4 |
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.