SXI
Standex International Corp
Price:  
225.88 
USD
Volume:  
206,697.00
United States | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SXI WACC - Weighted Average Cost of Capital

The WACC of Standex International Corp (SXI) is 9.0%.

The Cost of Equity of Standex International Corp (SXI) is 10.05%.
The Cost of Debt of Standex International Corp (SXI) is 5.20%.

Range Selected
Cost of equity 8.90% - 11.20% 10.05%
Tax rate 20.00% - 23.30% 21.65%
Cost of debt 5.10% - 5.30% 5.20%
WACC 8.1% - 9.9% 9.0%
WACC

SXI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.1 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.20%
Tax rate 20.00% 23.30%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.10% 5.30%
After-tax WACC 8.1% 9.9%
Selected WACC 9.0%

SXI'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 SXI:

cost_of_equity (10.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.