Skip to content

Ashland Inc. (ASH) — WACC Analysis

WACC Breakdown

Ashland Inc. (ASH) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 69.9% equity and 30.1% debt.

Interpretation

A WACC of 6.9% suggests that the market views Ashland Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare ASH's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

ASH WACC: 6.90% for Ashland Inc.

Current inputs imply a 9.19% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Ashland Inc. Common Stock (ASH) WACC Results
Weighted Average Cost of Capital
6.90%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 69.90%($3190.42M)
Debt: 30.10%($1374.00M)
Equity Component
6.42%
69.90% × 9.19%
Debt Component
0.48%
30.10% × 1.58%

Ashland Inc. (ASH) WACC in context

Ashland Inc. (ASH) currently screens with an estimated WACC of 6.90%. That blends a 9.19% cost of equity, a 2.00% pre-tax cost of debt, and a 69.90% 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 ASH WACC implies

A 6.90% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ASH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 69.90% 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.