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1st Source Corp (SRCE) — WACC Analysis

WACC Breakdown

1st Source Corp (SRCE) has a weighted average cost of capital (WACC) of 12.9%. The cost of equity is 8.3%, derived from a beta of 0.67 and a risk-free rate of 5.0%. The after-tax cost of debt is 61.7%. The capital structure is 91.3% equity and 8.7% debt.

Interpretation

A WACC of 12.9% indicates that the market perceives 1st Source Corp as higher-risk, requiring a greater return to compensate investors.

Investors can compare SRCE's WACC of 12.9% against industry peers to gauge its relative financing costs. A beta of 0.67 reflects the stock's volatility relative to the broader market.

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VALUATION

SRCE WACC: 12.89% for 1st Source Corp

Current inputs imply a 8.26% cost of equity and a 78.08% 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

1st Source Corp Common Stock (SRCE) WACC Results
Weighted Average Cost of Capital
12.89%
Cost of Equity
8.26%
Risk-Free Rate4.96%
Beta0.67
Market Risk Premium4.23%
Cost of Debt
61.68%
Pre-Tax Cost of Debt78.08%
Tax Rate21.00%
Tax Shield16.40%
Capital Structure
Equity: 91.34%($2104.03M)
Debt: 8.66%($199.49M)
Equity Component
7.54%
91.34% × 8.26%
Debt Component
5.34%
8.66% × 61.68%

1st Source Corp (SRCE) WACC in context

1st Source Corp (SRCE) currently screens with an estimated WACC of 12.89%. That blends a 8.26% cost of equity, a 78.08% pre-tax cost of debt, and a 91.34% 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 SRCE WACC implies

A 12.89% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates SRCE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.67 and equity accounts for 91.34% 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.