WTTR
Select Energy Services Inc
Price:  
7.72 
USD
Volume:  
1,998,933.00
United States | Energy Equipment & Services
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WTTR WACC - Weighted Average Cost of Capital

The WACC of Select Energy Services Inc (WTTR) is 35.6%.

The Cost of Equity of Select Energy Services Inc (WTTR) is 8.50%.
The Cost of Debt of Select Energy Services Inc (WTTR) is 423.35%.

Range Selected
Cost of equity 6.50% - 10.50% 8.50%
Tax rate 1.20% - 12.10% 6.65%
Cost of debt 4.80% - 841.90% 423.35%
WACC 6.4% - 64.8% 35.6%
WACC

WTTR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.58 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 10.50%
Tax rate 1.20% 12.10%
Debt/Equity ratio 0.08 0.08
Cost of debt 4.80% 841.90%
After-tax WACC 6.4% 64.8%
Selected WACC 35.6%

WTTR'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 WTTR:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.58) + 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.