WNC
Wabash National Corp
Price:  
10.76 
USD
Volume:  
607,960.00
United States | Machinery
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WNC WACC - Weighted Average Cost of Capital

The WACC of Wabash National Corp (WNC) is 7.2%.

The Cost of Equity of Wabash National Corp (WNC) is 9.40%.
The Cost of Debt of Wabash National Corp (WNC) is 5.90%.

Range Selected
Cost of equity 7.30% - 11.50% 9.40%
Tax rate 17.10% - 22.00% 19.55%
Cost of debt 4.80% - 7.00% 5.90%
WACC 5.8% - 8.7% 7.2%
WACC

WNC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.76 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 11.50%
Tax rate 17.10% 22.00%
Debt/Equity ratio 0.88 0.88
Cost of debt 4.80% 7.00%
After-tax WACC 5.8% 8.7%
Selected WACC 7.2%

WNC'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 WNC:

cost_of_equity (9.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + 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.