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Flotek Industries, Inc. (FTK) — WACC Analysis

WACC Breakdown

Flotek Industries, Inc. (FTK) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 9.9%, derived from a beta of 1.15 and a risk-free rate of 5.2%. The after-tax cost of debt is 8.5%. The capital structure is 94.9% equity and 5.1% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Flotek Industries, Inc..

Investors can compare FTK's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.15 reflects the stock's volatility relative to the broader market.

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VALUATION

FTK WACC: 9.80% for Flotek Industries, Inc.

Current inputs imply a 9.87% cost of equity and a 10.77% 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

Flotek Industries, Inc. Common Stock (FTK) WACC Results
Weighted Average Cost of Capital
9.80%
Cost of Equity
9.87%
Risk-Free Rate5.22%
Beta1.15
Market Risk Premium4.23%
Cost of Debt
8.51%
Pre-Tax Cost of Debt10.77%
Tax Rate21.00%
Tax Shield2.26%
Capital Structure
Equity: 94.85%($929.05M)
Debt: 5.15%($50.40M)
Equity Component
9.36%
94.85% × 9.87%
Debt Component
0.44%
5.15% × 8.51%

Flotek Industries, Inc. (FTK) WACC in context

Flotek Industries, Inc. (FTK) currently screens with an estimated WACC of 9.80%. That blends a 9.87% cost of equity, a 10.77% pre-tax cost of debt, and a 94.85% 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 FTK WACC implies

A 9.80% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FTK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.15 and equity accounts for 94.85% 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.