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Rockwell Automation, Inc. (ROK) — WACC Analysis

WACC Breakdown

Rockwell Automation, Inc. (ROK) has a weighted average cost of capital (WACC) of 9.1%. The cost of equity is 9.5%, derived from a beta of 1.18 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.3%. The capital structure is 93.5% equity and 6.5% debt.

Interpretation

A WACC of 9.1% is moderate, reflecting the market's balanced risk assessment of Rockwell Automation, Inc..

Investors can compare ROK's WACC of 9.1% against industry peers to gauge its relative financing costs. A beta of 1.18 reflects the stock's volatility relative to the broader market.

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VALUATION

ROK WACC: 9.07% for Rockwell Automation, Inc.

Current inputs imply a 9.47% cost of equity and a 4.24% 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

Rockwell Automation, Inc. Common Stock (ROK) WACC Results
Weighted Average Cost of Capital
9.07%
Cost of Equity
9.47%
Risk-Free Rate4.73%
Beta1.18
Market Risk Premium4.23%
Cost of Debt
3.35%
Pre-Tax Cost of Debt4.24%
Tax Rate21.00%
Tax Shield0.89%
Capital Structure
Equity: 93.54%($47.13B)
Debt: 6.46%($3256.00M)
Equity Component
8.86%
93.54% × 9.47%
Debt Component
0.22%
6.46% × 3.35%

Rockwell Automation, Inc. (ROK) WACC in context

Rockwell Automation, Inc. (ROK) currently screens with an estimated WACC of 9.07%. That blends a 9.47% cost of equity, a 4.24% pre-tax cost of debt, and a 93.54% 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 ROK WACC implies

A 9.07% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ROK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.18 and equity accounts for 93.54% 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.