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Spectrum Brands Holdings, Inc. (SPB) — WACC Analysis

WACC Breakdown

Spectrum Brands Holdings, Inc. (SPB) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 8.7%, derived from a beta of 0.93 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.0%. The capital structure is 77.3% equity and 22.7% debt.

Interpretation

A WACC of 7.6% suggests that the market views Spectrum Brands Holdings, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare SPB's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 0.93 reflects the stock's volatility relative to the broader market.

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VALUATION

SPB WACC: 7.64% for Spectrum Brands Holdings, Inc.

Current inputs imply a 8.71% cost of equity and a 5.07% 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

Spectrum Brands Holdings, Inc. Common Stock (SPB) WACC Results
Weighted Average Cost of Capital
7.64%
Cost of Equity
8.71%
Risk-Free Rate4.68%
Beta0.93
Market Risk Premium4.23%
Cost of Debt
4.00%
Pre-Tax Cost of Debt5.07%
Tax Rate21.00%
Tax Shield1.06%
Capital Structure
Equity: 77.29%($2041.32M)
Debt: 22.71%($599.70M)
Equity Component
6.73%
77.29% × 8.71%
Debt Component
0.91%
22.71% × 4.00%

Spectrum Brands Holdings, Inc. (SPB) WACC in context

Spectrum Brands Holdings, Inc. (SPB) currently screens with an estimated WACC of 7.64%. That blends a 8.71% cost of equity, a 5.07% pre-tax cost of debt, and a 77.29% 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 SPB WACC implies

A 7.64% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SPB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.93 and equity accounts for 77.29% 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.