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USA Compression Partners, LP Common Units (USAC) — WACC Analysis

WACC Breakdown

USA Compression Partners, LP Common Units (USAC) has a weighted average cost of capital (WACC) of 7.0%. The cost of equity is 8.5%, derived from a beta of 0.65 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.1%. The capital structure is 55.8% equity and 44.2% debt.

Interpretation

A WACC of 7.0% suggests that the market views USA Compression Partners, LP Common Units as relatively low-risk, with a lower cost of financing.

Investors can compare USAC's WACC of 7.0% 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

USAC WACC: 6.99% for USA Compression Partners, LP Common Units

Current inputs imply a 8.46% cost of equity and a 6.48% 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

USA Compression Partners, LP Common Units Common Stock (USAC) WACC Results
Weighted Average Cost of Capital
6.99%
Cost of Equity
8.46%
Risk-Free Rate5.22%
Beta0.65
Market Risk Premium4.23%
Cost of Debt
5.12%
Pre-Tax Cost of Debt6.48%
Tax Rate21.00%
Tax Shield1.36%
Capital Structure
Equity: 55.83%($3719.25M)
Debt: 44.17%($2942.10M)
Equity Component
4.73%
55.83% × 8.46%
Debt Component
2.26%
44.17% × 5.12%

USA Compression Partners, LP Common Units (USAC) WACC in context

USA Compression Partners, LP Common Units (USAC) currently screens with an estimated WACC of 6.99%. That blends a 8.46% cost of equity, a 6.48% pre-tax cost of debt, and a 55.83% 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 USAC WACC implies

A 6.99% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates USAC

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 55.83% 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.

USAC WACC: 6.99% — USA Compression Partners, LP Common Units Cost of Capital (October 2026) | DeepViews