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Karat Packaging Inc. Common Stock (KRT) — WACC Analysis

WACC Breakdown

Karat Packaging Inc. Common Stock (KRT) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 8.8%, derived from a beta of 0.79 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.1%. The capital structure is 95.8% equity and 4.2% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Karat Packaging Inc. Common Stock.

Investors can compare KRT's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.79 reflects the stock's volatility relative to the broader market.

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VALUATION

KRT WACC: 8.61% for Karat Packaging Inc. Common Stock

Current inputs imply a 8.85% cost of equity and a 3.98% 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

Karat Packaging Inc. Common Stock Common Stock (KRT) WACC Results
Weighted Average Cost of Capital
8.61%
Cost of Equity
8.85%
Risk-Free Rate5.21%
Beta0.79
Market Risk Premium4.23%
Cost of Debt
3.14%
Pre-Tax Cost of Debt3.98%
Tax Rate21.00%
Tax Shield0.84%
Capital Structure
Equity: 95.81%($1068.34M)
Debt: 4.19%($46.73M)
Equity Component
8.48%
95.81% × 8.85%
Debt Component
0.13%
4.19% × 3.14%

Karat Packaging Inc. Common Stock (KRT) WACC in context

Karat Packaging Inc. Common Stock (KRT) currently screens with an estimated WACC of 8.61%. That blends a 8.85% cost of equity, a 3.98% pre-tax cost of debt, and a 95.81% 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 KRT WACC implies

A 8.61% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates KRT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.79 and equity accounts for 95.81% 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.