Skip to content

Kennametal Inc. (KMT) — WACC Analysis

WACC Breakdown

Kennametal Inc. (KMT) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 9.8%, derived from a beta of 1.14 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 78.1% equity and 21.9% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of Kennametal Inc..

Investors can compare KMT's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 1.14 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

KMT WACC: 8.41% for Kennametal Inc.

Current inputs imply a 9.84% cost of equity and a 4.17% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Kennametal Inc. Common Stock (KMT) WACC Results
Weighted Average Cost of Capital
8.41%
Cost of Equity
9.84%
Risk-Free Rate5.22%
Beta1.14
Market Risk Premium4.23%
Cost of Debt
3.29%
Pre-Tax Cost of Debt4.17%
Tax Rate21.00%
Tax Shield0.88%
Capital Structure
Equity: 78.06%($2438.37M)
Debt: 21.94%($685.28M)
Equity Component
7.69%
78.06% × 9.84%
Debt Component
0.72%
21.94% × 3.29%

Kennametal Inc. (KMT) WACC in context

Kennametal Inc. (KMT) currently screens with an estimated WACC of 8.41%. That blends a 9.84% cost of equity, a 4.17% pre-tax cost of debt, and a 78.06% 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 KMT WACC implies

A 8.41% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates KMT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.14 and equity accounts for 78.06% 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.