ULH
Universal Logistics Holdings Inc
Price:  
25.38 
USD
Volume:  
50,662.00
United States | Road & Rail
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ULH WACC - Weighted Average Cost of Capital

The WACC of Universal Logistics Holdings Inc (ULH) is 7.6%.

The Cost of Equity of Universal Logistics Holdings Inc (ULH) is 11.05%.
The Cost of Debt of Universal Logistics Holdings Inc (ULH) is 6.10%.

Range Selected
Cost of equity 9.50% - 12.60% 11.05%
Tax rate 25.20% - 25.20% 25.20%
Cost of debt 5.20% - 7.00% 6.10%
WACC 6.5% - 8.7% 7.6%
WACC

ULH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.22 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.60%
Tax rate 25.20% 25.20%
Debt/Equity ratio 1.12 1.12
Cost of debt 5.20% 7.00%
After-tax WACC 6.5% 8.7%
Selected WACC 7.6%

ULH'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 ULH:

cost_of_equity (11.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.22) + 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.