TILE
Interface Inc
Price:  
20.43 
USD
Volume:  
277,915.00
United States | Commercial Services & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

TILE WACC - Weighted Average Cost of Capital

The WACC of Interface Inc (TILE) is 8.8%.

The Cost of Equity of Interface Inc (TILE) is 9.95%.
The Cost of Debt of Interface Inc (TILE) is 6.10%.

Range Selected
Cost of equity 8.50% - 11.40% 9.95%
Tax rate 23.80% - 26.40% 25.10%
Cost of debt 5.20% - 7.00% 6.10%
WACC 7.6% - 10.0% 8.8%
WACC

TILE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.40%
Tax rate 23.80% 26.40%
Debt/Equity ratio 0.28 0.28
Cost of debt 5.20% 7.00%
After-tax WACC 7.6% 10.0%
Selected WACC 8.8%

TILE'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 TILE:

cost_of_equity (9.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.