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Nordson Corp (NDSN) — WACC Analysis

WACC Breakdown

Nordson Corp (NDSN) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 8.9%, derived from a beta of 0.96 and a risk-free rate of 4.8%. The after-tax cost of debt is 4.7%. The capital structure is 91.9% equity and 8.1% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Nordson Corp.

Investors can compare NDSN's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 0.96 reflects the stock's volatility relative to the broader market.

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VALUATION

NDSN WACC: 8.53% for Nordson Corp

Current inputs imply a 8.87% cost of equity and a 5.89% 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

Nordson Corp Common Stock (NDSN) WACC Results
Weighted Average Cost of Capital
8.53%
Cost of Equity
8.87%
Risk-Free Rate4.75%
Beta0.96
Market Risk Premium4.23%
Cost of Debt
4.65%
Pre-Tax Cost of Debt5.89%
Tax Rate21.00%
Tax Shield1.24%
Capital Structure
Equity: 91.92%($17.51B)
Debt: 8.08%($1539.01M)
Equity Component
8.15%
91.92% × 8.87%
Debt Component
0.38%
8.08% × 4.65%

Nordson Corp (NDSN) WACC in context

Nordson Corp (NDSN) currently screens with an estimated WACC of 8.53%. That blends a 8.87% cost of equity, a 5.89% pre-tax cost of debt, and a 91.92% 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 NDSN WACC implies

A 8.53% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NDSN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.96 and equity accounts for 91.92% 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.