SWIM
Latham Group Inc
Price:  
6.94 
USD
Volume:  
349,108.00
United States | Leisure Products
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SWIM WACC - Weighted Average Cost of Capital

The WACC of Latham Group Inc (SWIM) is 9.4%.

The Cost of Equity of Latham Group Inc (SWIM) is 9.10%.
The Cost of Debt of Latham Group Inc (SWIM) is 14.05%.

Range Selected
Cost of equity 8.00% - 10.20% 9.10%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.20% - 20.90% 14.05%
WACC 7.3% - 11.5% 9.4%
WACC

SWIM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.89 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.35 0.35
Cost of debt 7.20% 20.90%
After-tax WACC 7.3% 11.5%
Selected WACC 9.4%

SWIM'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 SWIM:

cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.89) + 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.