USNA
USANA Health Sciences Inc
Price:  
29.44 
USD
Volume:  
200,746.00
United States | Personal Products
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USNA WACC - Weighted Average Cost of Capital

The WACC of USANA Health Sciences Inc (USNA) is 8.2%.

The Cost of Equity of USANA Health Sciences Inc (USNA) is 8.35%.
The Cost of Debt of USANA Health Sciences Inc (USNA) is 4.50%.

Range Selected
Cost of equity 7.10% - 9.60% 8.35%
Tax rate 34.40% - 36.80% 35.60%
Cost of debt 4.50% - 4.50% 4.50%
WACC 7.0% - 9.3% 8.2%
WACC

USNA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.60%
Tax rate 34.40% 36.80%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.50% 4.50%
After-tax WACC 7.0% 9.3%
Selected WACC 8.2%

USNA'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 USNA:

cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.