SUP
Superior Industries International Inc
Price:  
0.32 
USD
Volume:  
577,198.00
United States | Auto Components
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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 31.70%.
The Cost of Debt of Superior Industries International Inc (SUP) is 16.00%.

Range Selected
Cost of equity 5.90% - 57.50% 31.70%
Tax rate 24.80% - 35.90% 30.35%
Cost of debt 8.10% - 23.90% 16.00%
WACC 6.1% - 16.1% 11.1%
WACC

SUP WACC calculation

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 5.90% 57.50%
Tax rate 24.80% 35.90%
Debt/Equity ratio 51.11 51.11
Cost of debt 8.10% 23.90%
After-tax WACC 6.1% 16.1%
Selected WACC 11.1%

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.