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Alto Ingredients, Inc. Common Stock (ALTO) — WACC Analysis

WACC Breakdown

Alto Ingredients, Inc. Common Stock (ALTO) has a weighted average cost of capital (WACC) of 9.6%. The cost of equity is 9.6%, derived from a beta of 1.05 and a risk-free rate of 5.2%. The after-tax cost of debt is 9.6%. The capital structure is 78.6% equity and 21.4% debt.

Interpretation

A WACC of 9.6% is moderate, reflecting the market's balanced risk assessment of Alto Ingredients, Inc. Common Stock.

Investors can compare ALTO's WACC of 9.6% against industry peers to gauge its relative financing costs. A beta of 1.05 reflects the stock's volatility relative to the broader market.

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VALUATION

ALTO WACC: 9.60% for Alto Ingredients, Inc. Common Stock

Current inputs imply a 9.59% cost of equity and a 12.17% 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

Alto Ingredients, Inc. Common Stock Common Stock (ALTO) WACC Results
Weighted Average Cost of Capital
9.60%
Cost of Equity
9.59%
Risk-Free Rate5.22%
Beta1.05
Market Risk Premium4.23%
Cost of Debt
9.62%
Pre-Tax Cost of Debt12.17%
Tax Rate21.00%
Tax Shield2.56%
Capital Structure
Equity: 78.65%($283.90M)
Debt: 21.35%($77.07M)
Equity Component
7.54%
78.65% × 9.59%
Debt Component
2.05%
21.35% × 9.62%

Alto Ingredients, Inc. Common Stock (ALTO) WACC in context

Alto Ingredients, Inc. Common Stock (ALTO) currently screens with an estimated WACC of 9.60%. That blends a 9.59% cost of equity, a 12.17% pre-tax cost of debt, and a 78.65% 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 ALTO WACC implies

A 9.60% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ALTO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.05 and equity accounts for 78.65% 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.