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Cabot Corporation (CBT) — WACC Analysis

WACC Breakdown

Cabot Corporation (CBT) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 9.3%, derived from a beta of 1.04 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.8%. The capital structure is 79.0% equity and 21.0% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Cabot Corporation.

Investors can compare CBT's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 1.04 reflects the stock's volatility relative to the broader market.

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VALUATION

CBT WACC: 8.58% for Cabot Corporation

Current inputs imply a 9.32% cost of equity and a 7.31% 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

Cabot Corporation Common Stock (CBT) WACC Results
Weighted Average Cost of Capital
8.58%
Cost of Equity
9.32%
Risk-Free Rate4.98%
Beta1.04
Market Risk Premium4.23%
Cost of Debt
5.78%
Pre-Tax Cost of Debt7.31%
Tax Rate21.00%
Tax Shield1.54%
Capital Structure
Equity: 79.03%($3812.95M)
Debt: 20.97%($1012.00M)
Equity Component
7.37%
79.03% × 9.32%
Debt Component
1.21%
20.97% × 5.78%

Cabot Corporation (CBT) WACC in context

Cabot Corporation (CBT) currently screens with an estimated WACC of 8.58%. That blends a 9.32% cost of equity, a 7.31% pre-tax cost of debt, and a 79.03% 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 CBT WACC implies

A 8.58% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CBT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.04 and equity accounts for 79.03% 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.