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Sotera Health Company Common Stock (SHC) — WACC Analysis

WACC Breakdown

Sotera Health Company Common Stock (SHC) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 9.7%, derived from a beta of 1.16 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 71.4% equity and 28.6% debt.

Interpretation

A WACC of 7.4% suggests that the market views Sotera Health Company Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare SHC's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 1.16 reflects the stock's volatility relative to the broader market.

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VALUATION

SHC WACC: 7.40% for Sotera Health Company Common Stock

Current inputs imply a 9.73% 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

Sotera Health Company Common Stock Common Stock (SHC) WACC Results
Weighted Average Cost of Capital
7.40%
Cost of Equity
9.73%
Risk-Free Rate5.05%
Beta1.16
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 71.38%($5336.51M)
Debt: 28.62%($2139.46M)
Equity Component
6.95%
71.38% × 9.73%
Debt Component
0.45%
28.62% × 1.58%

Sotera Health Company Common Stock (SHC) WACC in context

Sotera Health Company Common Stock (SHC) currently screens with an estimated WACC of 7.40%. That blends a 9.73% cost of equity, a 2.00% pre-tax cost of debt, and a 71.38% 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 SHC WACC implies

A 7.40% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SHC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.16 and equity accounts for 71.38% 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.