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Forgent Power Solutions, Inc. (FPS) — WACC Analysis

WACC Breakdown

Forgent Power Solutions, Inc. (FPS) has a weighted average cost of capital (WACC) of 15.4%. The cost of equity is 15.8%, derived from a beta of 3.26 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.8%. The capital structure is 94.6% equity and 5.4% debt.

Interpretation

A WACC of 15.4% indicates that the market perceives Forgent Power Solutions, Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare FPS's WACC of 15.4% against industry peers to gauge its relative financing costs. A beta of 3.26 reflects the stock's volatility relative to the broader market.

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VALUATION

FPS WACC: 15.41% for Forgent Power Solutions, Inc.

Current inputs imply a 15.84% cost of equity and a 9.81% 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

Forgent Power Solutions, Inc. Common Stock (FPS) WACC Results
Weighted Average Cost of Capital
15.41%
Cost of Equity
15.84%
Risk-Free Rate5.24%
Beta3.26
Market Risk Premium4.23%
Cost of Debt
7.75%
Pre-Tax Cost of Debt9.81%
Tax Rate21.00%
Tax Shield2.06%
Capital Structure
Equity: 94.59%($10.18B)
Debt: 5.41%($582.17M)
Equity Component
14.99%
94.59% × 15.84%
Debt Component
0.42%
5.41% × 7.75%

Forgent Power Solutions, Inc. (FPS) WACC in context

Forgent Power Solutions, Inc. (FPS) currently screens with an estimated WACC of 15.41%. That blends a 15.84% cost of equity, a 9.81% pre-tax cost of debt, and a 94.59% 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 FPS WACC implies

A 15.41% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates FPS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 3.26 and equity accounts for 94.59% 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.

FPS WACC: 15.41% — Forgent Power Solutions, Inc. Cost of Capital (October 2026) | DeepViews