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Ingersoll Rand Inc. Common Stock (IR) — WACC Analysis

WACC Breakdown

Ingersoll Rand Inc. Common Stock (IR) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.5%, derived from a beta of 1.18 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.3%. The capital structure is 86.5% equity and 13.5% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Ingersoll Rand Inc. Common Stock.

Investors can compare IR's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 1.18 reflects the stock's volatility relative to the broader market.

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VALUATION

IR WACC: 8.76% for Ingersoll Rand Inc. Common Stock

Current inputs imply a 9.47% cost of equity and a 5.39% 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

Ingersoll Rand Inc. Common Stock Common Stock (IR) WACC Results
Weighted Average Cost of Capital
8.76%
Cost of Equity
9.47%
Risk-Free Rate4.73%
Beta1.18
Market Risk Premium4.23%
Cost of Debt
4.26%
Pre-Tax Cost of Debt5.39%
Tax Rate21.00%
Tax Shield1.13%
Capital Structure
Equity: 86.48%($30.49B)
Debt: 13.52%($4768.50M)
Equity Component
8.19%
86.48% × 9.47%
Debt Component
0.58%
13.52% × 4.26%

Ingersoll Rand Inc. Common Stock (IR) WACC in context

Ingersoll Rand Inc. Common Stock (IR) currently screens with an estimated WACC of 8.76%. That blends a 9.47% cost of equity, a 5.39% pre-tax cost of debt, and a 86.48% 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 IR WACC implies

A 8.76% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates IR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.18 and equity accounts for 86.48% 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.