USX
US Xpress Enterprises Inc
Price:  
6.14 
USD
Volume:  
239,221.00
United States | Road & Rail
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USX WACC - Weighted Average Cost of Capital

The WACC of US Xpress Enterprises Inc (USX) is 7.4%.

The Cost of Equity of US Xpress Enterprises Inc (USX) is 11.50%.
The Cost of Debt of US Xpress Enterprises Inc (USX) is 5.75%.

Range Selected
Cost of equity 10.00% - 13.00% 11.50%
Tax rate 19.40% - 22.80% 21.10%
Cost of debt 4.50% - 7.00% 5.75%
WACC 6.2% - 8.5% 7.4%
WACC

USX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.34 1.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 13.00%
Tax rate 19.40% 22.80%
Debt/Equity ratio 1.47 1.47
Cost of debt 4.50% 7.00%
After-tax WACC 6.2% 8.5%
Selected WACC 7.4%

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 (11.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.34) + 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.