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Andersons Inc/The (ANDE) — WACC Analysis

WACC Breakdown

Andersons Inc/The (ANDE) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.2%, derived from a beta of 0.62 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.0%. The capital structure is 70.7% equity and 29.3% debt.

Interpretation

A WACC of 7.3% suggests that the market views Andersons Inc/The as relatively low-risk, with a lower cost of financing.

Investors can compare ANDE's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.62 reflects the stock's volatility relative to the broader market.

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VALUATION

ANDE WACC: 7.26% for Andersons Inc/The

Current inputs imply a 8.21% cost of equity and a 6.27% 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

Andersons Inc/The Common Stock (ANDE) WACC Results
Weighted Average Cost of Capital
7.26%
Cost of Equity
8.21%
Risk-Free Rate5.05%
Beta0.62
Market Risk Premium4.23%
Cost of Debt
4.95%
Pre-Tax Cost of Debt6.27%
Tax Rate21.00%
Tax Shield1.32%
Capital Structure
Equity: 70.74%($2122.45M)
Debt: 29.26%($877.85M)
Equity Component
5.81%
70.74% × 8.21%
Debt Component
1.45%
29.26% × 4.95%

Andersons Inc/The (ANDE) WACC in context

Andersons Inc/The (ANDE) currently screens with an estimated WACC of 7.26%. That blends a 8.21% cost of equity, a 6.27% pre-tax cost of debt, and a 70.74% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What ANDE WACC implies

A 7.26% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ANDE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.62 and equity accounts for 70.74% 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.