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Waste Connections, Inc. (WCN) — WACC Analysis

WACC Breakdown

Waste Connections, Inc. (WCN) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 7.8%, derived from a beta of 0.41 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.0%. The capital structure is 80.4% equity and 19.6% debt.

Interpretation

A WACC of 6.8% suggests that the market views Waste Connections, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare WCN's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 0.41 reflects the stock's volatility relative to the broader market.

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VALUATION

WCN WACC: 6.84% for Waste Connections, Inc.

Current inputs imply a 7.79% cost of equity and a 3.74% 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

Waste Connections, Inc. Common Stock (WCN) WACC Results
Weighted Average Cost of Capital
6.84%
Cost of Equity
7.79%
Risk-Free Rate5.22%
Beta0.41
Market Risk Premium4.23%
Cost of Debt
2.95%
Pre-Tax Cost of Debt3.74%
Tax Rate21.00%
Tax Shield0.78%
Capital Structure
Equity: 80.41%($38.45B)
Debt: 19.59%($9364.28M)
Equity Component
6.26%
80.41% × 7.79%
Debt Component
0.58%
19.59% × 2.95%

Waste Connections, Inc. (WCN) WACC in context

Waste Connections, Inc. (WCN) currently screens with an estimated WACC of 6.84%. That blends a 7.79% cost of equity, a 3.74% pre-tax cost of debt, and a 80.41% 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 WCN WACC implies

A 6.84% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WCN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.41 and equity accounts for 80.41% 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.