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S&P Global Inc. (SPGI) — WACC Analysis

WACC Breakdown

S&P Global Inc. (SPGI) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 8.5%, derived from a beta of 0.85 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.8%. The capital structure is 90.6% equity and 9.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views S&P Global Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare SPGI's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.85 reflects the stock's volatility relative to the broader market.

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VALUATION

SPGI WACC: 7.91% for S&P Global Inc.

Current inputs imply a 8.54% cost of equity and a 2.29% 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

S&P Global Inc. Common Stock (SPGI) WACC Results
Weighted Average Cost of Capital
7.91%
Cost of Equity
8.54%
Risk-Free Rate4.73%
Beta0.85
Market Risk Premium4.23%
Cost of Debt
1.81%
Pre-Tax Cost of Debt2.29%
Tax Rate21.00%
Tax Shield0.48%
Capital Structure
Equity: 90.61%($128.49B)
Debt: 9.39%($13.32B)
Equity Component
7.74%
90.61% × 8.54%
Debt Component
0.17%
9.39% × 1.81%

S&P Global Inc. (SPGI) WACC in context

S&P Global Inc. (SPGI) currently screens with an estimated WACC of 7.91%. That blends a 8.54% cost of equity, a 2.29% pre-tax cost of debt, and a 90.61% 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 SPGI WACC implies

A 7.91% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SPGI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.85 and equity accounts for 90.61% 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.