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Wabtec Inc. (WAB) — WACC Analysis

WACC Breakdown

Wabtec Inc. (WAB) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 9.3%, derived from a beta of 1.00 and a risk-free rate of 5.1%. The after-tax cost of debt is 3.4%. The capital structure is 88.1% equity and 11.9% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Wabtec Inc..

Investors can compare WAB's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

WAB WACC: 8.63% for Wabtec Inc.

Current inputs imply a 9.33% cost of equity and a 4.32% 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

Wabtec Inc. Common Stock (WAB) WACC Results
Weighted Average Cost of Capital
8.63%
Cost of Equity
9.33%
Risk-Free Rate5.10%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.41%
Pre-Tax Cost of Debt4.32%
Tax Rate21.00%
Tax Shield0.91%
Capital Structure
Equity: 88.09%($48.61B)
Debt: 11.91%($6571.00M)
Equity Component
8.22%
88.09% × 9.33%
Debt Component
0.41%
11.91% × 3.41%

Wabtec Inc. (WAB) WACC in context

Wabtec Inc. (WAB) currently screens with an estimated WACC of 8.63%. That blends a 9.33% cost of equity, a 4.32% pre-tax cost of debt, and a 88.09% 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 WAB WACC implies

A 8.63% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates WAB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 88.09% 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.