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Stanley Black & Decker, Inc. (SWK) — WACC Analysis

WACC Breakdown

Stanley Black & Decker, Inc. (SWK) has a weighted average cost of capital (WACC) of 9.3%. The cost of equity is 9.8%, derived from a beta of 1.29 and a risk-free rate of 4.7%. The after-tax cost of debt is 7.9%. The capital structure is 75.8% equity and 24.2% debt.

Interpretation

A WACC of 9.3% is moderate, reflecting the market's balanced risk assessment of Stanley Black & Decker, Inc..

Investors can compare SWK's WACC of 9.3% against industry peers to gauge its relative financing costs. A beta of 1.29 reflects the stock's volatility relative to the broader market.

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VALUATION

SWK WACC: 9.32% for Stanley Black & Decker, Inc.

Current inputs imply a 9.78% cost of equity and a 10.00% 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

Stanley Black & Decker, Inc. Common Stock (SWK) WACC Results
Weighted Average Cost of Capital
9.32%
Cost of Equity
9.78%
Risk-Free Rate4.73%
Beta1.29
Market Risk Premium4.23%
Cost of Debt
7.90%
Pre-Tax Cost of Debt10.00%
Tax Rate21.00%
Tax Shield2.10%
Capital Structure
Equity: 75.84%($14.77B)
Debt: 24.16%($4704.20M)
Equity Component
7.42%
75.84% × 9.78%
Debt Component
1.91%
24.16% × 7.90%

Stanley Black & Decker, Inc. (SWK) WACC in context

Stanley Black & Decker, Inc. (SWK) currently screens with an estimated WACC of 9.32%. That blends a 9.78% cost of equity, a 10.00% pre-tax cost of debt, and a 75.84% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What SWK WACC implies

A 9.32% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SWK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.29 and equity accounts for 75.84% 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.