Skip to content

Flowserve Corporation (FLS) — WACC Analysis

WACC Breakdown

Flowserve Corporation (FLS) has a weighted average cost of capital (WACC) of 8.7%. The cost of equity is 10.0%, derived from a beta of 1.21 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.1%. The capital structure is 80.8% equity and 19.2% debt.

Interpretation

A WACC of 8.7% is moderate, reflecting the market's balanced risk assessment of Flowserve Corporation.

Investors can compare FLS's WACC of 8.7% against industry peers to gauge its relative financing costs. A beta of 1.21 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

FLS WACC: 8.71% for Flowserve Corporation

Current inputs imply a 10.04% cost of equity and a 3.95% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Flowserve Corporation Common Stock (FLS) WACC Results
Weighted Average Cost of Capital
8.71%
Cost of Equity
10.04%
Risk-Free Rate5.22%
Beta1.21
Market Risk Premium4.23%
Cost of Debt
3.12%
Pre-Tax Cost of Debt3.95%
Tax Rate21.00%
Tax Shield0.83%
Capital Structure
Equity: 80.79%($8980.52M)
Debt: 19.21%($2135.16M)
Equity Component
8.11%
80.79% × 10.04%
Debt Component
0.60%
19.21% × 3.12%

Flowserve Corporation (FLS) WACC in context

Flowserve Corporation (FLS) currently screens with an estimated WACC of 8.71%. That blends a 10.04% cost of equity, a 3.95% pre-tax cost of debt, and a 80.79% 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 FLS WACC implies

A 8.71% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FLS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.21 and equity accounts for 80.79% 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.