Synalloy Corp (SYNL) WACC Analysis

As of June 17, 2025, Synalloy Corp (SYNL) carries a Weighted Average Cost of Capital (WACC) of 7.3%. WACC reflects the blended rate Synalloy Corp must pay to both equity and debt holders.

Within that, the cost of equity is 7.8%, the cost of debt is 4.0%, and the effective tax rate is 18.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 0.73 – 0.82
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.46

What It Means for Investors

With a selected WACC of 7.3%, Synalloy Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.