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Insulet Corporation (PODD) — WACC Analysis

WACC Breakdown

Insulet Corporation (PODD) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 9.2%, derived from a beta of 1.02 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.9%. The capital structure is 91.0% equity and 9.0% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of Insulet Corporation.

Investors can compare PODD's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 1.02 reflects the stock's volatility relative to the broader market.

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VALUATION

PODD WACC: 8.85% for Insulet Corporation

Current inputs imply a 9.25% cost of equity and a 6.20% 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

Insulet Corporation Common Stock (PODD) WACC Results
Weighted Average Cost of Capital
8.85%
Cost of Equity
9.25%
Risk-Free Rate4.96%
Beta1.02
Market Risk Premium4.23%
Cost of Debt
4.90%
Pre-Tax Cost of Debt6.20%
Tax Rate21.00%
Tax Shield1.30%
Capital Structure
Equity: 90.97%($9557.01M)
Debt: 9.03%($948.40M)
Equity Component
8.41%
90.97% × 9.25%
Debt Component
0.44%
9.03% × 4.90%

Insulet Corporation (PODD) WACC in context

Insulet Corporation (PODD) currently screens with an estimated WACC of 8.85%. That blends a 9.25% cost of equity, a 6.20% pre-tax cost of debt, and a 90.97% 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 PODD WACC implies

A 8.85% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PODD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.02 and equity accounts for 90.97% 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.