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Eastman Chemical Company (EMN) — WACC Analysis

WACC Breakdown

Eastman Chemical Company (EMN) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.2%. The capital structure is 61.4% equity and 38.6% debt.

Interpretation

A WACC of 6.7% suggests that the market views Eastman Chemical Company as relatively low-risk, with a lower cost of financing.

Investors can compare EMN's WACC of 6.7% 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

EMN WACC: 6.74% for Eastman Chemical Company

Current inputs imply a 8.96% cost of equity and a 4.08% 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

Eastman Chemical Company Common Stock (EMN) WACC Results
Weighted Average Cost of Capital
6.74%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.23%
Pre-Tax Cost of Debt4.08%
Tax Rate21.00%
Tax Shield0.86%
Capital Structure
Equity: 61.35%($8281.82M)
Debt: 38.65%($5217.00M)
Equity Component
5.50%
61.35% × 8.96%
Debt Component
1.25%
38.65% × 3.23%

Eastman Chemical Company (EMN) WACC in context

Eastman Chemical Company (EMN) currently screens with an estimated WACC of 6.74%. That blends a 8.96% cost of equity, a 4.08% pre-tax cost of debt, and a 61.35% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What EMN WACC implies

A 6.74% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EMN

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 61.35% 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.