Sotera Health CoSHC +2.43%74 WACC % is 9.47% as of Jun. 26, 2026, which is 3% below its 10-year median of 9.78. GuruFocus rates SHC with a GF Score™ of 74/100 and a GF Value™ of $16.31 (Fairly Valued). The stock has 3 warning signs investors should review. Among 219 Medical Diagnostics & Research companies, Sotera Health Co ranks worse than 52.51% on this metric.
As of today (2026-06-26), Sotera Health Co's weighted average cost of capital is 9.47%%. Sotera Health Co's ROIC % is 7.97% (calculated using TTM income statement data).
Sotera Health Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Sotera Health Co (NAS:SHC) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sotera Health Co's weighted average cost of capital is 9.47%%. Sotera Health Co's ROIC % is 7.97% (calculated using TTM income statement data).
Sotera Health Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Sotera Health Co WACC % Historical Data
* Premium members only.
The historical data trend for Sotera Health Co's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Diagnostics & Research subindustry, Sotera Health Co's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sotera Health Co WACC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's WACC % distribution charts can be found below:
* The bar in red indicates where Sotera Health Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Sotera Health Co's market capitalization (E) is $4876.356 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Sotera Health Co's latest one-year quarterly average Book Value of Debt (D) is $2303.497 Mil.
a) weight of equity = E / (E + D) = 4876.356 / (4876.356 + 2303.497) = 0.6792
b) weight of debt = D / (E + D) = 2303.497 / (4876.356 + 2303.497) = 0.3208
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.369%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Sotera Health Co's beta is 1.3019.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.369% + 1.3019 * 6% = 12.1804%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Sotera Health Co's interest expense (positive number) was $149.591 Mil. Its total Book Value of Debt (D) is $2303.497 Mil.
Cost of Debt = 149.591 / 2303.497 = 6.4941%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 87.144 / 204.942 = 42.52%.
Sotera Health Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.6792
*
12.1804%
+
0.3208
*
6.4941%
*
(1 - 42.52%)
=
9.47%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sotera Health Co (SHC) has a WACC % of 9.47% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sotera Health Co and its competitors. This is near median its historical median of 9.78. Over the past decade, Sotera Health Co's WACC % has ranged from 6.44 to 14.07. According to the industry distribution chart, Sotera Health Co ranks #115 out of 219 companies in the Medical Diagnostics & Research industry, placing it in the top 52.5%.
Is Sotera Health Co's WACC % too high?
Sotera Health Co's current WACC % of 9.47% is near median its 10-year median of 9.78. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 14.07. The Medical Diagnostics & Research industry median WACC % is 9.27. Sotera Health Co's value of 9.47% is 2.2% above this industry median. Based on the distribution chart, Sotera Health Co ranks #115 out of 219 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Sotera Health Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sotera Health Co's WACC % compare to BLLN and RDNT?
According to the Medical Diagnostics & Research industry distribution chart, Sotera Health Co ranks #115 out of 219 companies for WACC %. This places Sotera Health Co in the lower half of its industry. The industry median WACC % is 9.27. Sotera Health Co's value of 9.47% is 2.2% above this benchmark. Historically, Sotera Health Co's own WACC % has ranged from 6.44 to 14.07 over the past decade. While the company's 10-year median is 9.78 vs. the industry median of 9.27, Sotera Health Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Medical Diagnostics & Research company?
The median WACC % among Medical Diagnostics & Research companies is 9.27, based on 219 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sotera Health Co's current WACC % of 9.47% is 2.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sotera Health Co and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotera Health Co's current WACC % is 9.47%, which is near median its own 10-year median of 9.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotera Health Co stock overvalued right now?
Based on GuruFocus' analysis, Sotera Health Co (SHC) is currently considered Fairly Valued. The stock's GF Value™ is $16.31, compared to a current price of $17.10 — trading 4.8% above its estimated fair value. The current WACC % is 9.47%, which is near median its 10-year median of 9.78 and 2.2% above the Medical Diagnostics & Research industry median of 9.27. Sotera Health Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Sotera Health Co (SHC), the current WACC % is 9.47% as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sotera Health Co (SHC) Overvalued in 2026?
Based on GuruFocus' analysis, Sotera Health Co stock appears to be overvalued.
The current stock price of $17.10 is trading 4.8% above its estimated GF Value™ of $16.31.
GuruFocus considers Sotera Health Co to be Fairly Valued.
Key valuation signals for SHC:
WACC %: 9.47% (near median its 10-year median of 9.78)
GF Value™: $16.31 vs. price of $17.10 (4.8% above fair value)
Industry Position: 2.2% above the Medical Diagnostics & Research median (#115 of 219)
No single metric tells the full story. See the SHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical, and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three reportable segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment, which generates maximum revenue, provides outsourced terminal sterilization and irradiation services for medical devices, pharmaceuticals, food safety, and other application markets using three core technologies: gamma irradiation, EO processing, and E-beam irradiation. Geographically, the company generates maximum revenue from the United States, followed by Canada, Europe, and other regions.
74GF Score
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