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Insight Enterprises Inc (NSIT) — WACC Analysis

WACC Breakdown

Insight Enterprises Inc (NSIT) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.8%, derived from a beta of 0.85 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.1%. The capital structure is 78.0% equity and 22.0% debt.

Interpretation

A WACC of 8.0% suggests that the market views Insight Enterprises Inc as relatively low-risk, with a lower cost of financing.

Investors can compare NSIT's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 0.85 reflects the stock's volatility relative to the broader market.

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VALUATION

NSIT WACC: 7.97% for Insight Enterprises Inc

Current inputs imply a 8.79% cost of equity and a 6.43% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Insight Enterprises Inc Common Stock (NSIT) WACC Results
Weighted Average Cost of Capital
7.97%
Cost of Equity
8.79%
Risk-Free Rate4.98%
Beta0.85
Market Risk Premium4.23%
Cost of Debt
5.08%
Pre-Tax Cost of Debt6.43%
Tax Rate21.00%
Tax Shield1.35%
Capital Structure
Equity: 78.04%($5240.82M)
Debt: 21.96%($1475.09M)
Equity Component
6.86%
78.04% × 8.79%
Debt Component
1.12%
21.96% × 5.08%

Insight Enterprises Inc (NSIT) WACC in context

Insight Enterprises Inc (NSIT) currently screens with an estimated WACC of 7.97%. That blends a 8.79% cost of equity, a 6.43% pre-tax cost of debt, and a 78.04% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What NSIT WACC implies

A 7.97% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates NSIT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.85 and equity accounts for 78.04% 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.