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Atmus Filtration Technologies Inc. (ATMU) — WACC Analysis

WACC Breakdown

Atmus Filtration Technologies Inc. (ATMU) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 9.9%, derived from a beta of 1.15 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.5%. The capital structure is 77.9% equity and 22.1% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Atmus Filtration Technologies Inc..

Investors can compare ATMU's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 1.15 reflects the stock's volatility relative to the broader market.

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VALUATION

ATMU WACC: 8.46% for Atmus Filtration Technologies Inc.

Current inputs imply a 9.87% cost of equity and a 4.44% 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

Atmus Filtration Technologies Inc. Common Stock (ATMU) WACC Results
Weighted Average Cost of Capital
8.46%
Cost of Equity
9.87%
Risk-Free Rate5.22%
Beta1.15
Market Risk Premium4.23%
Cost of Debt
3.51%
Pre-Tax Cost of Debt4.44%
Tax Rate21.00%
Tax Shield0.93%
Capital Structure
Equity: 77.89%($3515.95M)
Debt: 22.11%($998.30M)
Equity Component
7.69%
77.89% × 9.87%
Debt Component
0.78%
22.11% × 3.51%

Atmus Filtration Technologies Inc. (ATMU) WACC in context

Atmus Filtration Technologies Inc. (ATMU) currently screens with an estimated WACC of 8.46%. That blends a 9.87% cost of equity, a 4.44% pre-tax cost of debt, and a 77.89% 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 ATMU WACC implies

A 8.46% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ATMU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.15 and equity accounts for 77.89% 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.