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POST HOLDINGS, INC. (POST) — WACC Analysis

WACC Breakdown

POST HOLDINGS, INC. (POST) has a weighted average cost of capital (WACC) of 5.9%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.3%. The capital structure is 31.9% equity and 68.1% debt.

Interpretation

A WACC of 5.9% suggests that the market views POST HOLDINGS, INC. as relatively low-risk, with a lower cost of financing.

Investors can compare POST's WACC of 5.9% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

POST WACC: 5.87% for POST HOLDINGS, INC.

Current inputs imply a 9.19% cost of equity and a 5.46% 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

POST HOLDINGS, INC. Common Stock (POST) WACC Results
Weighted Average Cost of Capital
5.87%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
4.31%
Pre-Tax Cost of Debt5.46%
Tax Rate21.00%
Tax Shield1.15%
Capital Structure
Equity: 31.91%($3597.25M)
Debt: 68.09%($7676.00M)
Equity Component
2.93%
31.91% × 9.19%
Debt Component
2.94%
68.09% × 4.31%

POST HOLDINGS, INC. (POST) WACC in context

POST HOLDINGS, INC. (POST) currently screens with an estimated WACC of 5.87%. That blends a 9.19% cost of equity, a 5.46% pre-tax cost of debt, and a 31.91% 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 POST WACC implies

A 5.87% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates POST

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 31.91% 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.