US Ecology Inc (ECOL) WACC Analysis

As of May 22, 2025, US Ecology Inc (ECOL) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate US Ecology Inc must pay to both equity and debt holders.

Within that, the cost of equity is 8.0%, the cost of debt is 4.0%, and the effective tax rate is 24.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.13 – 1.23
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.5

What It Means for Investors

With a selected WACC of 8.1%, US Ecology Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.