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Borr Drilling Limited (BORR) — WACC Analysis

WACC Breakdown

Borr Drilling Limited (BORR) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 9.6%, derived from a beta of 1.25 and a risk-free rate of 4.7%. The after-tax cost of debt is 8.4%. The capital structure is 39.0% equity and 61.0% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of Borr Drilling Limited.

Investors can compare BORR's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 1.25 reflects the stock's volatility relative to the broader market.

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VALUATION

BORR WACC: 8.86% for Borr Drilling Limited

Current inputs imply a 9.61% cost of equity and a 10.62% 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

Borr Drilling Limited Common Stock (BORR) WACC Results
Weighted Average Cost of Capital
8.86%
Cost of Equity
9.61%
Risk-Free Rate4.67%
Beta1.25
Market Risk Premium4.23%
Cost of Debt
8.39%
Pre-Tax Cost of Debt10.62%
Tax Rate21.00%
Tax Shield2.23%
Capital Structure
Equity: 38.97%($1372.88M)
Debt: 61.03%($2150.30M)
Equity Component
3.74%
38.97% × 9.61%
Debt Component
5.12%
61.03% × 8.39%

Borr Drilling Limited (BORR) WACC in context

Borr Drilling Limited (BORR) currently screens with an estimated WACC of 8.86%. That blends a 9.61% cost of equity, a 10.62% pre-tax cost of debt, and a 38.97% 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 BORR WACC implies

A 8.86% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates BORR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.25 and equity accounts for 38.97% 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.