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Wd-40 Co (WDFC) — WACC Analysis

WACC Breakdown

Wd-40 Co (WDFC) has a weighted average cost of capital (WACC) of 7.7%. The cost of equity is 8.0%, derived from a beta of 0.47 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.2%. The capital structure is 96.4% equity and 3.6% debt.

Interpretation

A WACC of 7.7% suggests that the market views Wd-40 Co as relatively low-risk, with a lower cost of financing.

Investors can compare WDFC's WACC of 7.7% against industry peers to gauge its relative financing costs. A beta of 0.47 reflects the stock's volatility relative to the broader market.

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VALUATION

WDFC WACC: 7.75% for Wd-40 Co

Current inputs imply a 7.96% cost of equity and a 2.75% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Wd-40 Co Common Stock (WDFC) WACC Results
Weighted Average Cost of Capital
7.75%
Cost of Equity
7.96%
Risk-Free Rate5.22%
Beta0.47
Market Risk Premium4.23%
Cost of Debt
2.17%
Pre-Tax Cost of Debt2.75%
Tax Rate21.00%
Tax Shield0.58%
Capital Structure
Equity: 96.42%($2714.95M)
Debt: 3.58%($100.67M)
Equity Component
7.67%
96.42% × 7.96%
Debt Component
0.08%
3.58% × 2.17%

Wd-40 Co (WDFC) WACC in context

Wd-40 Co (WDFC) currently screens with an estimated WACC of 7.75%. That blends a 7.96% cost of equity, a 2.75% pre-tax cost of debt, and a 96.42% 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 WDFC WACC implies

A 7.75% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WDFC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.47 and equity accounts for 96.42% 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.