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Certara, Inc. Common Stock (CERT) — WACC Analysis

WACC Breakdown

Certara, Inc. Common Stock (CERT) has a weighted average cost of capital (WACC) of 8.7%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.8%. The capital structure is 80.7% equity and 19.3% debt.

Interpretation

A WACC of 8.7% is moderate, reflecting the market's balanced risk assessment of Certara, Inc. Common Stock.

Investors can compare CERT's WACC of 8.7% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

CERT WACC: 8.73% for Certara, Inc. Common Stock

Current inputs imply a 9.19% cost of equity and a 6.79% 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

Certara, Inc. Common Stock Common Stock (CERT) WACC Results
Weighted Average Cost of Capital
8.73%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
6.79%
Pre-Tax Cost of Debt6.79%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 80.67%($1220.31M)
Debt: 19.33%($292.47M)
Equity Component
7.41%
80.67% × 9.19%
Debt Component
1.31%
19.33% × 6.79%

Certara, Inc. Common Stock (CERT) WACC in context

Certara, Inc. Common Stock (CERT) currently screens with an estimated WACC of 8.73%. That blends a 9.19% cost of equity, a 6.79% pre-tax cost of debt, and a 80.67% 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 CERT WACC implies

A 8.73% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CERT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 80.67% 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.