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Resideo Technologies, Inc. Common Stock (REZI) — WACC Analysis

WACC Breakdown

Resideo Technologies, Inc. Common Stock (REZI) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 10.7%, derived from a beta of 1.46 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.0%. The capital structure is 41.4% equity and 58.6% debt.

Interpretation

A WACC of 6.8% suggests that the market views Resideo Technologies, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare REZI's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 1.46 reflects the stock's volatility relative to the broader market.

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VALUATION

REZI WACC: 6.76% for Resideo Technologies, Inc. Common Stock

Current inputs imply a 10.75% cost of equity and a 5.00% 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

Resideo Technologies, Inc. Common Stock Common Stock (REZI) WACC Results
Weighted Average Cost of Capital
6.76%
Cost of Equity
10.75%
Risk-Free Rate5.22%
Beta1.46
Market Risk Premium4.23%
Cost of Debt
3.95%
Pre-Tax Cost of Debt5.00%
Tax Rate21.00%
Tax Shield1.05%
Capital Structure
Equity: 41.38%($2525.22M)
Debt: 58.62%($3578.00M)
Equity Component
4.45%
41.38% × 10.75%
Debt Component
2.32%
58.62% × 3.95%

Resideo Technologies, Inc. Common Stock (REZI) WACC in context

Resideo Technologies, Inc. Common Stock (REZI) currently screens with an estimated WACC of 6.76%. That blends a 10.75% cost of equity, a 5.00% pre-tax cost of debt, and a 41.38% 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 REZI WACC implies

A 6.76% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates REZI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.46 and equity accounts for 41.38% 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.