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Envela Corporation (ELA) — WACC Analysis

WACC Breakdown

Envela Corporation (ELA) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 8.8%, derived from a beta of 0.78 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.9%. The capital structure is 97.0% equity and 3.0% debt.

Interpretation

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

Investors can compare ELA's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.78 reflects the stock's volatility relative to the broader market.

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VALUATION

ELA WACC: 8.65% for Envela Corporation

Current inputs imply a 8.83% cost of equity and a 3.64% 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

Envela Corporation Common Stock (ELA) WACC Results
Weighted Average Cost of Capital
8.65%
Cost of Equity
8.83%
Risk-Free Rate5.22%
Beta0.78
Market Risk Premium4.23%
Cost of Debt
2.87%
Pre-Tax Cost of Debt3.64%
Tax Rate21.00%
Tax Shield0.76%
Capital Structure
Equity: 96.98%($310.52M)
Debt: 3.02%($9.67M)
Equity Component
8.56%
96.98% × 8.83%
Debt Component
0.09%
3.02% × 2.87%

Envela Corporation (ELA) WACC in context

Envela Corporation (ELA) currently screens with an estimated WACC of 8.65%. That blends a 8.83% cost of equity, a 3.64% pre-tax cost of debt, and a 96.98% 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 ELA WACC implies

A 8.65% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ELA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.78 and equity accounts for 96.98% 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.