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ITT Inc. (ITT) — WACC Analysis

WACC Breakdown

ITT Inc. (ITT) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 10.1%, derived from a beta of 1.24 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.1%. The capital structure is 82.8% equity and 17.2% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of ITT Inc..

Investors can compare ITT's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 1.24 reflects the stock's volatility relative to the broader market.

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VALUATION

ITT WACC: 8.76% for ITT Inc.

Current inputs imply a 10.13% cost of equity and a 2.70% 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

ITT Inc. Common Stock (ITT) WACC Results
Weighted Average Cost of Capital
8.76%
Cost of Equity
10.13%
Risk-Free Rate5.22%
Beta1.24
Market Risk Premium4.23%
Cost of Debt
2.13%
Pre-Tax Cost of Debt2.70%
Tax Rate21.00%
Tax Shield0.57%
Capital Structure
Equity: 82.84%($18.00B)
Debt: 17.16%($3728.20M)
Equity Component
8.39%
82.84% × 10.13%
Debt Component
0.37%
17.16% × 2.13%

ITT Inc. (ITT) WACC in context

ITT Inc. (ITT) currently screens with an estimated WACC of 8.76%. That blends a 10.13% cost of equity, a 2.70% pre-tax cost of debt, and a 82.84% 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 ITT 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 ITT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.24 and equity accounts for 82.84% 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.