Skip to content

Ryerson Holding Corporation (RYZ) — WACC Analysis

WACC Breakdown

Ryerson Holding Corporation (RYZ) has a weighted average cost of capital (WACC) of 13.2%. The cost of equity is 9.8%, derived from a beta of 1.14 and a risk-free rate of 5.2%. The after-tax cost of debt is 1753.8%. The capital structure is 99.8% equity and 0.2% debt.

Interpretation

A WACC of 13.2% indicates that the market perceives Ryerson Holding Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare RYZ's WACC of 13.2% against industry peers to gauge its relative financing costs. A beta of 1.14 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

RYZ WACC: 13.15% for Ryerson Holding Corporation

Current inputs imply a 9.84% cost of equity and a 1753.85% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Ryerson Holding Corporation Common Stock (RYZ) WACC Results
Weighted Average Cost of Capital
13.15%
Cost of Equity
9.84%
Risk-Free Rate5.22%
Beta1.14
Market Risk Premium4.23%
Cost of Debt
1753.85%
Pre-Tax Cost of Debt1753.85%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.81%($1367.53M)
Debt: 0.19%($2.60M)
Equity Component
9.83%
99.81% × 9.84%
Debt Component
3.33%
0.19% × 1753.85%

Ryerson Holding Corporation (RYZ) WACC in context

Ryerson Holding Corporation (RYZ) currently screens with an estimated WACC of 13.15%. That blends a 9.84% cost of equity, a 1753.85% pre-tax cost of debt, and a 99.81% 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 RYZ WACC implies

A 13.15% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates RYZ

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.14 and equity accounts for 99.81% 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.