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Huntsman Corporation (HUN) — WACC Analysis

WACC Breakdown

Huntsman Corporation (HUN) has a weighted average cost of capital (WACC) of 5.2%. The cost of equity is 9.3%, derived from a beta of 1.05 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.0%. The capital structure is 44.2% equity and 55.8% debt.

Interpretation

A WACC of 5.2% suggests that the market views Huntsman Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare HUN's WACC of 5.2% against industry peers to gauge its relative financing costs. A beta of 1.05 reflects the stock's volatility relative to the broader market.

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VALUATION

HUN WACC: 5.25% for Huntsman Corporation

Current inputs imply a 9.34% cost of equity and a 2.00% 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

Huntsman Corporation Common Stock (HUN) WACC Results
Weighted Average Cost of Capital
5.25%
Cost of Equity
9.34%
Risk-Free Rate4.97%
Beta1.05
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 44.24%($1631.02M)
Debt: 55.76%($2056.00M)
Equity Component
4.13%
44.24% × 9.34%
Debt Component
1.12%
55.76% × 2.00%

Huntsman Corporation (HUN) WACC in context

Huntsman Corporation (HUN) currently screens with an estimated WACC of 5.25%. That blends a 9.34% cost of equity, a 2.00% pre-tax cost of debt, and a 44.24% 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 HUN WACC implies

A 5.25% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HUN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.05 and equity accounts for 44.24% 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.