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Axalta Coating Systems Ltd. (AXTA) — WACC Analysis

WACC Breakdown

Axalta Coating Systems Ltd. (AXTA) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 9.5%, derived from a beta of 1.10 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.1%. The capital structure is 70.6% equity and 29.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views Axalta Coating Systems Ltd. as relatively low-risk, with a lower cost of financing.

Investors can compare AXTA's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 1.10 reflects the stock's volatility relative to the broader market.

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VALUATION

AXTA WACC: 7.90% for Axalta Coating Systems Ltd.

Current inputs imply a 9.49% cost of equity and a 5.14% 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%

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Axalta Coating Systems Ltd. Common Stock (AXTA) WACC Results
Weighted Average Cost of Capital
7.90%
Cost of Equity
9.49%
Risk-Free Rate4.98%
Beta1.10
Market Risk Premium4.23%
Cost of Debt
4.06%
Pre-Tax Cost of Debt5.14%
Tax Rate21.00%
Tax Shield1.08%
Capital Structure
Equity: 70.60%($7192.54M)
Debt: 29.40%($2995.00M)
Equity Component
6.70%
70.60% × 9.49%
Debt Component
1.19%
29.40% × 4.06%

Axalta Coating Systems Ltd. (AXTA) WACC in context

Axalta Coating Systems Ltd. (AXTA) currently screens with an estimated WACC of 7.90%. That blends a 9.49% cost of equity, a 5.14% pre-tax cost of debt, and a 70.60% 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 AXTA WACC implies

A 7.90% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates AXTA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.10 and equity accounts for 70.60% 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.