Brooks Automation Inc (BRKS) WACC Analysis

As of May 27, 2025, Brooks Automation Inc (BRKS) carries a Weighted Average Cost of Capital (WACC) of 9.2%. WACC reflects the blended rate Brooks Automation Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.9%, the cost of debt is 4.0%, and the effective tax rate is 27.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.13 – 1.2
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.01

What It Means for Investors

With a selected WACC of 9.2%, Brooks Automation Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.