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Blue Bird Corporation Common Stock (BLBD) — WACC Analysis

WACC Breakdown

Blue Bird Corporation Common Stock (BLBD) has a weighted average cost of capital (WACC) of 9.6%. The cost of equity is 9.8%, derived from a beta of 1.12 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.2%. The capital structure is 95.7% equity and 4.3% debt.

Interpretation

A WACC of 9.6% is moderate, reflecting the market's balanced risk assessment of Blue Bird Corporation Common Stock.

Investors can compare BLBD's WACC of 9.6% against industry peers to gauge its relative financing costs. A beta of 1.12 reflects the stock's volatility relative to the broader market.

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VALUATION

BLBD WACC: 9.63% for Blue Bird Corporation Common Stock

Current inputs imply a 9.79% cost of equity and a 7.85% 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

Blue Bird Corporation Common Stock Common Stock (BLBD) WACC Results
Weighted Average Cost of Capital
9.63%
Cost of Equity
9.79%
Risk-Free Rate5.22%
Beta1.12
Market Risk Premium4.23%
Cost of Debt
6.20%
Pre-Tax Cost of Debt7.85%
Tax Rate21.00%
Tax Shield1.65%
Capital Structure
Equity: 95.67%($1916.63M)
Debt: 4.33%($86.81M)
Equity Component
9.36%
95.67% × 9.79%
Debt Component
0.27%
4.33% × 6.20%

Blue Bird Corporation Common Stock (BLBD) WACC in context

Blue Bird Corporation Common Stock (BLBD) currently screens with an estimated WACC of 9.63%. That blends a 9.79% cost of equity, a 7.85% pre-tax cost of debt, and a 95.67% 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 BLBD WACC implies

A 9.63% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates BLBD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.12 and equity accounts for 95.67% 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.