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Alta Equipment Group Inc. (ALTG) — WACC Analysis

WACC Breakdown

Alta Equipment Group Inc. (ALTG) has a weighted average cost of capital (WACC) of 11.2%. The cost of equity is 10.6%, derived from a beta of 1.40 and a risk-free rate of 5.2%. The after-tax cost of debt is 11.4%. The capital structure is 21.9% equity and 78.1% debt.

Interpretation

A WACC of 11.2% is moderate, reflecting the market's balanced risk assessment of Alta Equipment Group Inc..

Investors can compare ALTG's WACC of 11.2% against industry peers to gauge its relative financing costs. A beta of 1.40 reflects the stock's volatility relative to the broader market.

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VALUATION

ALTG WACC: 11.21% for Alta Equipment Group Inc.

Current inputs imply a 10.58% cost of equity and a 11.39% 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

Alta Equipment Group Inc. Common Stock (ALTG) WACC Results
Weighted Average Cost of Capital
11.21%
Cost of Equity
10.58%
Risk-Free Rate5.22%
Beta1.40
Market Risk Premium4.23%
Cost of Debt
11.39%
Pre-Tax Cost of Debt11.39%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 21.92%($205.15M)
Debt: 78.08%($730.60M)
Equity Component
2.32%
21.92% × 10.58%
Debt Component
8.89%
78.08% × 11.39%

Alta Equipment Group Inc. (ALTG) WACC in context

Alta Equipment Group Inc. (ALTG) currently screens with an estimated WACC of 11.21%. That blends a 10.58% cost of equity, a 11.39% pre-tax cost of debt, and a 21.92% 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 ALTG WACC implies

A 11.21% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ALTG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.40 and equity accounts for 21.92% 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.