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Sensient Technology Corporation (SXT) — WACC Analysis

WACC Breakdown

Sensient Technology Corporation (SXT) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.8%, derived from a beta of 0.78 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.2%. The capital structure is 87.9% equity and 12.1% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Sensient Technology Corporation.

Investors can compare SXT's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.78 reflects the stock's volatility relative to the broader market.

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VALUATION

SXT WACC: 8.15% for Sensient Technology Corporation

Current inputs imply a 8.83% cost of equity and a 4.05% 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

Sensient Technology Corporation Common Stock (SXT) WACC Results
Weighted Average Cost of Capital
8.15%
Cost of Equity
8.83%
Risk-Free Rate5.22%
Beta0.78
Market Risk Premium4.23%
Cost of Debt
3.20%
Pre-Tax Cost of Debt4.05%
Tax Rate21.00%
Tax Shield0.85%
Capital Structure
Equity: 87.87%($5532.74M)
Debt: 12.13%($763.90M)
Equity Component
7.76%
87.87% × 8.83%
Debt Component
0.39%
12.13% × 3.20%

Sensient Technology Corporation (SXT) WACC in context

Sensient Technology Corporation (SXT) currently screens with an estimated WACC of 8.15%. That blends a 8.83% cost of equity, a 4.05% pre-tax cost of debt, and a 87.87% 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 SXT WACC implies

A 8.15% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SXT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.78 and equity accounts for 87.87% 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.