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Ralliant Corporation (RAL) — WACC Analysis

WACC Breakdown

Ralliant Corporation (RAL) has a weighted average cost of capital (WACC) of 9.7%. The cost of equity is 10.8%, derived from a beta of 1.48 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 87.4% equity and 12.6% debt.

Interpretation

A WACC of 9.7% is moderate, reflecting the market's balanced risk assessment of Ralliant Corporation.

Investors can compare RAL's WACC of 9.7% against industry peers to gauge its relative financing costs. A beta of 1.48 reflects the stock's volatility relative to the broader market.

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VALUATION

RAL WACC: 9.72% for Ralliant Corporation

Current inputs imply a 10.82% cost of equity and a 2.00% 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

Ralliant Corporation Common Stock (RAL) WACC Results
Weighted Average Cost of Capital
9.72%
Cost of Equity
10.82%
Risk-Free Rate5.24%
Beta1.48
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 87.45%($8000.38M)
Debt: 12.55%($1148.50M)
Equity Component
9.46%
87.45% × 10.82%
Debt Component
0.25%
12.55% × 2.00%

Ralliant Corporation (RAL) WACC in context

Ralliant Corporation (RAL) currently screens with an estimated WACC of 9.72%. That blends a 10.82% cost of equity, a 2.00% pre-tax cost of debt, and a 87.45% 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 RAL WACC implies

A 9.72% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates RAL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.48 and equity accounts for 87.45% 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.