Skip to content

The J.M. Smucker Company (SJM) — WACC Analysis

WACC Breakdown

The J.M. Smucker Company (SJM) has a weighted average cost of capital (WACC) of 6.6%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.6%. The capital structure is 68.2% equity and 31.8% debt.

Interpretation

A WACC of 6.6% suggests that the market views The J.M. Smucker Company as relatively low-risk, with a lower cost of financing.

Investors can compare SJM's WACC of 6.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

SJM WACC: 6.61% for The J.M. Smucker Company

Current inputs imply a 8.96% 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
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

The J.M. Smucker Company Common Stock (SJM) WACC Results
Weighted Average Cost of Capital
6.61%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 68.21%($14.14B)
Debt: 31.79%($6587.80M)
Equity Component
6.11%
68.21% × 8.96%
Debt Component
0.50%
31.79% × 1.58%

The J.M. Smucker Company (SJM) WACC in context

The J.M. Smucker Company (SJM) currently screens with an estimated WACC of 6.61%. That blends a 8.96% cost of equity, a 2.00% pre-tax cost of debt, and a 68.21% 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 SJM WACC implies

A 6.61% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SJM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 68.21% 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.