UFPT WACC - Weighted Average Cost of Capital
The WACC of UFP Technologies Inc (UFPT) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.5% | 7.4% |
| Tax rate | 18.7% - 19.8% | 19.25% |
| Cost of debt | 4.6% - 21.1% | 12.85% |
| WACC | 6.1% - 9.3% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.54 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.5% |
| Tax rate | 18.7% | 19.8% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.6% | 21.1% |
| After-tax WACC | 6.1% | 9.3% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UFPT | UFP Technologies Inc | 0.1 | 1.41 | 1.3 |
| ACGX | Alliance Creative Group Inc | 79.18 | -1.44 | -0.02 |
| AVY | Avery Dennison Corp | 0.23 | 0.39 | 0.32 |
| CAS.TO | Cascades Inc | 2.49 | 1.11 | 0.37 |
| GPK | Graphic Packaging Holding Co | 0.77 | 0.36 | 0.22 |
| IDND | International Dispensing Corp | 3.42 | 1.59 | 0.42 |
| IFX.V | Imaflex Inc | 0.17 | -0.2 | -0.17 |
| PKG | Packaging Corp of America | 0.15 | 0.66 | 0.59 |
| SEE | Sealed Air Corp | 0.98 | 1.02 | 0.57 |
| SON | Sonoco Products Co | 1.61 | 0.5 | 0.22 |
| Low | High | |
| Unlevered beta | 0.28 | 0.39 |
| Relevered beta | 0.31 | 0.48 |
| Adjusted relevered beta | 0.54 | 0.65 |
UFPT'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 UFPT:
cost_of_equity (7.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.54) + 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.