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Commercial Vehicle Group, Inc. (CVGI) — WACC Analysis

WACC Breakdown

Commercial Vehicle Group, Inc. (CVGI) has a weighted average cost of capital (WACC) of 13.0%. The cost of equity is 10.2%, derived from a beta of 1.25 and a risk-free rate of 5.2%. The after-tax cost of debt is 16.6%. The capital structure is 56.0% equity and 44.0% debt.

Interpretation

A WACC of 13.0% indicates that the market perceives Commercial Vehicle Group, Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare CVGI's WACC of 13.0% 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

CVGI WACC: 13.01% for Commercial Vehicle Group, Inc.

Current inputs imply a 10.15% cost of equity and a 16.64% 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

Commercial Vehicle Group, Inc. Common Stock (CVGI) WACC Results
Weighted Average Cost of Capital
13.01%
Cost of Equity
10.15%
Risk-Free Rate5.22%
Beta1.25
Market Risk Premium4.23%
Cost of Debt
16.64%
Pre-Tax Cost of Debt16.64%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 55.96%($116.62M)
Debt: 44.04%($91.78M)
Equity Component
5.68%
55.96% × 10.15%
Debt Component
7.33%
44.04% × 16.64%

Commercial Vehicle Group, Inc. (CVGI) WACC in context

Commercial Vehicle Group, Inc. (CVGI) currently screens with an estimated WACC of 13.01%. That blends a 10.15% cost of equity, a 16.64% pre-tax cost of debt, and a 55.96% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What CVGI WACC implies

A 13.01% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates CVGI

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 55.96% 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.