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Air Products & Chemicals, Inc. (APD) — WACC Analysis

WACC Breakdown

Air Products & Chemicals, Inc. (APD) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 8.1%, derived from a beta of 0.69 and a risk-free rate of 4.7%. The after-tax cost of debt is 174.6%. The capital structure is 99.8% equity and 0.2% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of Air Products & Chemicals, Inc..

Investors can compare APD's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 0.69 reflects the stock's volatility relative to the broader market.

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VALUATION

APD WACC: 8.39% for Air Products & Chemicals, Inc.

Current inputs imply a 8.09% cost of equity and a 174.59% 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

Air Products & Chemicals, Inc. Common Stock (APD) WACC Results
Weighted Average Cost of Capital
8.39%
Cost of Equity
8.09%
Risk-Free Rate4.73%
Beta0.69
Market Risk Premium4.23%
Cost of Debt
174.59%
Pre-Tax Cost of Debt174.59%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.82%($68.61B)
Debt: 0.18%($126.70M)
Equity Component
8.07%
99.82% × 8.09%
Debt Component
0.32%
0.18% × 174.59%

Air Products & Chemicals, Inc. (APD) WACC in context

Air Products & Chemicals, Inc. (APD) currently screens with an estimated WACC of 8.39%. That blends a 8.09% cost of equity, a 174.59% pre-tax cost of debt, and a 99.82% 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 APD WACC implies

A 8.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates APD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.69 and equity accounts for 99.82% 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.