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Willis Lease Finance Corp (WLFC) — WACC Analysis

WACC Breakdown

Willis Lease Finance Corp (WLFC) has a weighted average cost of capital (WACC) of 5.6%. The cost of equity is 9.0%, derived from a beta of 0.83 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.4%. The capital structure is 26.6% equity and 73.4% debt.

Interpretation

A WACC of 5.6% suggests that the market views Willis Lease Finance Corp as relatively low-risk, with a lower cost of financing.

Investors can compare WLFC's WACC of 5.6% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

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VALUATION

WLFC WACC: 5.60% for Willis Lease Finance Corp

Current inputs imply a 8.97% cost of equity and a 5.55% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Willis Lease Finance Corp Common Stock (WLFC) WACC Results
Weighted Average Cost of Capital
5.60%
Cost of Equity
8.97%
Risk-Free Rate5.22%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
4.38%
Pre-Tax Cost of Debt5.55%
Tax Rate21.00%
Tax Shield1.16%
Capital Structure
Equity: 26.63%($842.38M)
Debt: 73.37%($2320.90M)
Equity Component
2.39%
26.63% × 8.97%
Debt Component
3.21%
73.37% × 4.38%

Willis Lease Finance Corp (WLFC) WACC in context

Willis Lease Finance Corp (WLFC) currently screens with an estimated WACC of 5.60%. That blends a 8.97% cost of equity, a 5.55% pre-tax cost of debt, and a 26.63% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What WLFC WACC implies

A 5.60% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WLFC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 26.63% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.