UTZ WACC - Weighted Average Cost of Capital

The WACC of UTZ Brands Inc (UTZ) is 8.4%.

The Cost of Equity of UTZ Brands Inc (UTZ) is 6.90%.

The Cost of Debt of UTZ Brands Inc (UTZ) is 14.50%.

	Range	Selected
Cost of equity	6.10% - 7.70%	6.90%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	5.10% - 23.90%	14.50%
WACC	5.2% - 11.5%	8.4%

WACC

UTZ WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.49	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	7.70%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.66	0.66
Cost of debt	5.10%	23.90%

After-tax WACC	5.2%	11.5%


Selected WACC	8.4%

UTZ'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 UTZ:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.49) + 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.