Sensata Technologies Holding PLC (ST) WACC Analysis

As of May 29, 2025, Sensata Technologies Holding PLC (ST) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate Sensata Technologies Holding PLC must pay to both equity and debt holders.

Within that, the cost of equity is 10.0%, the cost of debt is 4.5%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.34 – 1.47
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.87

What It Means for Investors

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