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Southland Holdings, Inc. (SLND) — WACC Analysis

WACC Breakdown

Southland Holdings, Inc. (SLND) has a weighted average cost of capital (WACC) of 14.9%. The cost of equity is 8.6%, derived from a beta of 0.71 and a risk-free rate of 5.2%. The after-tax cost of debt is 16.5%. The capital structure is 20.2% equity and 79.8% debt.

Interpretation

A WACC of 14.9% indicates that the market perceives Southland Holdings, Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare SLND's WACC of 14.9% against industry peers to gauge its relative financing costs. A beta of 0.71 reflects the stock's volatility relative to the broader market.

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VALUATION

SLND WACC: 14.93% for Southland Holdings, Inc.

Current inputs imply a 8.63% cost of equity and a 16.53% 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

Southland Holdings, Inc. Common Stock (SLND) WACC Results
Weighted Average Cost of Capital
14.93%
Cost of Equity
8.63%
Risk-Free Rate5.22%
Beta0.71
Market Risk Premium4.23%
Cost of Debt
16.53%
Pre-Tax Cost of Debt16.53%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 20.18%($52.27M)
Debt: 79.82%($206.79M)
Equity Component
1.74%
20.18% × 8.63%
Debt Component
13.19%
79.82% × 16.53%

Southland Holdings, Inc. (SLND) WACC in context

Southland Holdings, Inc. (SLND) currently screens with an estimated WACC of 14.93%. That blends a 8.63% cost of equity, a 16.53% pre-tax cost of debt, and a 20.18% 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 SLND WACC implies

A 14.93% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates SLND

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.71 and equity accounts for 20.18% 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.