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Pro-Dex Inc New (PDEX) — WACC Analysis

WACC Breakdown

Pro-Dex Inc New (PDEX) has a weighted average cost of capital (WACC) of 7.2%. The cost of equity is 7.7%, derived from a beta of 0.59 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.7%. The capital structure is 89.8% equity and 10.2% debt.

Interpretation

A WACC of 7.2% suggests that the market views Pro-Dex Inc New as relatively low-risk, with a lower cost of financing.

Investors can compare PDEX's WACC of 7.2% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

PDEX WACC: 7.23% for Pro-Dex Inc New

Current inputs imply a 7.74% cost of equity and a 3.38% 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

Pro-Dex Inc New Common Stock (PDEX) WACC Results
Weighted Average Cost of Capital
7.23%
Cost of Equity
7.74%
Risk-Free Rate4.67%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
2.67%
Pre-Tax Cost of Debt3.38%
Tax Rate21.00%
Tax Shield0.71%
Capital Structure
Equity: 89.78%($199.72M)
Debt: 10.22%($22.73M)
Equity Component
6.95%
89.78% × 7.74%
Debt Component
0.27%
10.22% × 2.67%

Pro-Dex Inc New (PDEX) WACC in context

Pro-Dex Inc New (PDEX) currently screens with an estimated WACC of 7.23%. That blends a 7.74% cost of equity, a 3.38% pre-tax cost of debt, and a 89.78% 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 PDEX WACC implies

A 7.23% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PDEX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 89.78% 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.