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Albemarle Corporation (ALB) — WACC Analysis

WACC Breakdown

Albemarle Corporation (ALB) has a weighted average cost of capital (WACC) of 10.2%. The cost of equity is 10.5%, derived from a beta of 1.55 and a risk-free rate of 4.7%. The after-tax cost of debt is 7.3%. The capital structure is 89.6% equity and 10.4% debt.

Interpretation

A WACC of 10.2% is moderate, reflecting the market's balanced risk assessment of Albemarle Corporation.

Investors can compare ALB's WACC of 10.2% against industry peers to gauge its relative financing costs. A beta of 1.55 reflects the stock's volatility relative to the broader market.

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VALUATION

ALB WACC: 10.17% for Albemarle Corporation

Current inputs imply a 10.51% cost of equity and a 9.21% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Albemarle Corporation Common Stock (ALB) WACC Results
Weighted Average Cost of Capital
10.17%
Cost of Equity
10.51%
Risk-Free Rate4.73%
Beta1.55
Market Risk Premium4.23%
Cost of Debt
7.27%
Pre-Tax Cost of Debt9.21%
Tax Rate21.00%
Tax Shield1.93%
Capital Structure
Equity: 89.62%($16.21B)
Debt: 10.38%($1876.78M)
Equity Component
9.42%
89.62% × 10.51%
Debt Component
0.75%
10.38% × 7.27%

Albemarle Corporation (ALB) WACC in context

Albemarle Corporation (ALB) currently screens with an estimated WACC of 10.17%. That blends a 10.51% cost of equity, a 9.21% pre-tax cost of debt, and a 89.62% 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 ALB WACC implies

A 10.17% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ALB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.55 and equity accounts for 89.62% 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.