USX WACC - Weighted Average Cost of Capital
The WACC of US Xpress Enterprises Inc (USX) is 7.3%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.1% | 11.45% |
| Tax rate | 19.4% - 22.8% | 21.1% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 6.1% - 8.5% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.28 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.1% |
| Tax rate | 19.4% | 22.8% |
| Debt/Equity ratio | 1.47 | 1.47 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 6.1% | 8.5% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| USX | US Xpress Enterprises Inc | 1.47 | 1.56 | 0.73 |
| ARCB | ArcBest Corp | 0.13 | 1.29 | 1.17 |
| HTLD | Heartland Express Inc | 0.3 | 0.84 | 0.68 |
| KNX | Knight-Swift Transportation Holdings Inc | 0.35 | 1.13 | 0.89 |
| MTL.TO | Mullen Group Ltd | 0.84 | 0.6 | 0.37 |
| ODFL | Old Dominion Freight Line Inc | 0 | 0.97 | 0.97 |
| RRTS | Roadrunner Transportation Systems Inc | 2.2 | 1.73 | 0.64 |
| TTR.V | Titanium Transportation Group Inc | 1.13 | 1.77 | 0.94 |
| ULH | Universal Logistics Holdings Inc | 1.24 | 1.09 | 0.56 |
| WERN | Werner Enterprises Inc | 0.4 | 0.68 | 0.52 |
| Low | High | |
| Unlevered beta | 0.66 | 0.79 |
| Relevered beta | 1.42 | 1.7 |
| Adjusted relevered beta | 1.28 | 1.47 |
USX'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 USX:
cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.28) + 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.