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Polaris Inc. (PII) — WACC Analysis

WACC Breakdown

Polaris Inc. (PII) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 10.1%, derived from a beta of 1.24 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.1%. The capital structure is 58.2% equity and 41.8% debt.

Interpretation

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

Investors can compare PII's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 1.24 reflects the stock's volatility relative to the broader market.

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VALUATION

PII WACC: 8.45% for Polaris Inc.

Current inputs imply a 10.13% cost of equity and a 6.11% 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

Polaris Inc. Common Stock (PII) WACC Results
Weighted Average Cost of Capital
8.45%
Cost of Equity
10.13%
Risk-Free Rate5.22%
Beta1.24
Market Risk Premium4.23%
Cost of Debt
6.11%
Pre-Tax Cost of Debt6.11%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 58.23%($2914.60M)
Debt: 41.77%($2091.00M)
Equity Component
5.90%
58.23% × 10.13%
Debt Component
2.55%
41.77% × 6.11%

Polaris Inc. (PII) WACC in context

Polaris Inc. (PII) currently screens with an estimated WACC of 8.45%. That blends a 10.13% cost of equity, a 6.11% pre-tax cost of debt, and a 58.23% 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 PII WACC implies

A 8.45% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PII

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.24 and equity accounts for 58.23% 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.