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Aecom (ACM) — WACC Analysis

WACC Breakdown

Aecom (ACM) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.8%, derived from a beta of 0.87 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.8%. The capital structure is 74.9% equity and 25.1% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Aecom.

Investors can compare ACM's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.87 reflects the stock's volatility relative to the broader market.

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VALUATION

ACM WACC: 8.08% for Aecom

Current inputs imply a 8.84% cost of equity and a 7.37% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Aecom Common Stock (ACM) WACC Results
Weighted Average Cost of Capital
8.08%
Cost of Equity
8.84%
Risk-Free Rate4.98%
Beta0.87
Market Risk Premium4.23%
Cost of Debt
5.82%
Pre-Tax Cost of Debt7.37%
Tax Rate21.00%
Tax Shield1.55%
Capital Structure
Equity: 74.86%($8173.51M)
Debt: 25.14%($2745.20M)
Equity Component
6.62%
74.86% × 8.84%
Debt Component
1.46%
25.14% × 5.82%

Aecom (ACM) WACC in context

Aecom (ACM) currently screens with an estimated WACC of 8.08%. That blends a 8.84% cost of equity, a 7.37% pre-tax cost of debt, and a 74.86% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ACM WACC implies

A 8.08% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ACM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.87 and equity accounts for 74.86% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.