WMK
Weis Markets Inc
Price:  
87.97 
USD
Volume:  
151,562.00
United States | Food & Staples Retailing
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WMK WACC - Weighted Average Cost of Capital

The WACC of Weis Markets Inc (WMK) is 5.2%.

The Cost of Equity of Weis Markets Inc (WMK) is 7.20%.
The Cost of Debt of Weis Markets Inc (WMK) is 4.50%.

Range Selected
Cost of equity 5.80% - 8.60% 7.20%
Tax rate 26.70% - 27.10% 26.90%
Cost of debt 4.50% - 4.50% 4.50%
WACC 4.5% - 5.9% 5.2%
WACC

WMK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.41 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.60%
Tax rate 26.70% 27.10%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 4.5% 5.9%
Selected WACC 5.2%

WMK'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 WMK:

cost_of_equity (7.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.