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Redwire Corporation (RDW) — WACC Analysis

WACC Breakdown

Redwire Corporation (RDW) has a weighted average cost of capital (WACC) of 12.2%. The cost of equity is 12.4%, derived from a beta of 2.13 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.0%. The capital structure is 98.2% equity and 1.8% debt.

Interpretation

A WACC of 12.2% indicates that the market perceives Redwire Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare RDW's WACC of 12.2% against industry peers to gauge its relative financing costs. A beta of 2.13 reflects the stock's volatility relative to the broader market.

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VALUATION

RDW WACC: 12.19% for Redwire Corporation

Current inputs imply a 12.38% 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

Redwire Corporation Common Stock (RDW) WACC Results
Weighted Average Cost of Capital
12.19%
Cost of Equity
12.38%
Risk-Free Rate4.96%
Beta2.13
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 98.20%($2622.42M)
Debt: 1.80%($48.06M)
Equity Component
12.15%
98.20% × 12.38%
Debt Component
0.04%
1.80% × 2.00%

Redwire Corporation (RDW) WACC in context

Redwire Corporation (RDW) currently screens with an estimated WACC of 12.19%. That blends a 12.38% cost of equity, a 2.00% pre-tax cost of debt, and a 98.20% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What RDW WACC implies

A 12.19% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates RDW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.13 and equity accounts for 98.20% 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.