Skip to content

Smurfit Westrock plc (SW) — WACC Analysis

WACC Breakdown

Smurfit Westrock plc (SW) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 10.2%, derived from a beta of 1.25 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.7%. The capital structure is 60.5% equity and 39.5% debt.

Interpretation

A WACC of 8.0% suggests that the market views Smurfit Westrock plc as relatively low-risk, with a lower cost of financing.

Investors can compare SW's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 1.25 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

SW WACC: 8.00% for Smurfit Westrock plc

Current inputs imply a 10.15% cost of equity and a 5.95% 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

Smurfit Westrock plc Common Stock (SW) WACC Results
Weighted Average Cost of Capital
8.00%
Cost of Equity
10.15%
Risk-Free Rate5.22%
Beta1.25
Market Risk Premium4.23%
Cost of Debt
4.70%
Pre-Tax Cost of Debt5.95%
Tax Rate21.00%
Tax Shield1.25%
Capital Structure
Equity: 60.46%($21.66B)
Debt: 39.54%($14.16B)
Equity Component
6.14%
60.46% × 10.15%
Debt Component
1.86%
39.54% × 4.70%

Smurfit Westrock plc (SW) WACC in context

Smurfit Westrock plc (SW) currently screens with an estimated WACC of 8.00%. That blends a 10.15% cost of equity, a 5.95% pre-tax cost of debt, and a 60.46% 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 SW WACC implies

A 8.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.25 and equity accounts for 60.46% 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.