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TAT Technologies Ltd (TATT) — WACC Analysis

WACC Breakdown

TAT Technologies Ltd (TATT) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 7.9%, derived from a beta of 0.65 and a risk-free rate of 4.7%. The after-tax cost of debt is 6.8%. The capital structure is 97.6% equity and 2.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views TAT Technologies Ltd as relatively low-risk, with a lower cost of financing.

Investors can compare TATT's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.65 reflects the stock's volatility relative to the broader market.

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VALUATION

TATT WACC: 7.89% for TAT Technologies Ltd

Current inputs imply a 7.91% cost of equity and a 8.62% 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

TAT Technologies Ltd Common Stock (TATT) WACC Results
Weighted Average Cost of Capital
7.89%
Cost of Equity
7.91%
Risk-Free Rate4.67%
Beta0.65
Market Risk Premium4.23%
Cost of Debt
6.81%
Pre-Tax Cost of Debt8.62%
Tax Rate21.00%
Tax Shield1.81%
Capital Structure
Equity: 97.58%($471.83M)
Debt: 2.42%($11.71M)
Equity Component
7.72%
97.58% × 7.91%
Debt Component
0.17%
2.42% × 6.81%

TAT Technologies Ltd (TATT) WACC in context

TAT Technologies Ltd (TATT) currently screens with an estimated WACC of 7.89%. That blends a 7.91% cost of equity, a 8.62% pre-tax cost of debt, and a 97.58% 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 TATT WACC implies

A 7.89% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TATT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.65 and equity accounts for 97.58% 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.