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Woodward, Inc. (WWD) — WACC Analysis

WACC Breakdown

Woodward, Inc. (WWD) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.1%. The capital structure is 94.1% equity and 5.9% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Woodward, Inc..

Investors can compare WWD's WACC of 8.8% 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

WWD WACC: 8.83% for Woodward, Inc.

Current inputs imply a 9.19% cost of equity and a 3.92% 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

Woodward, Inc. Common Stock (WWD) WACC Results
Weighted Average Cost of Capital
8.83%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.10%
Pre-Tax Cost of Debt3.92%
Tax Rate21.00%
Tax Shield0.82%
Capital Structure
Equity: 94.06%($19.17B)
Debt: 5.94%($1210.16M)
Equity Component
8.64%
94.06% × 9.19%
Debt Component
0.18%
5.94% × 3.10%

Woodward, Inc. (WWD) WACC in context

Woodward, Inc. (WWD) currently screens with an estimated WACC of 8.83%. That blends a 9.19% cost of equity, a 3.92% pre-tax cost of debt, and a 94.06% 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 WWD WACC implies

A 8.83% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates WWD

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 94.06% 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.