Question 1

What is Applied Industrial Technologies, Inc.'s WACC?

Accepted Answer

Applied Industrial Technologies, Inc. (AIT) has a Weighted Average Cost of Capital (WACC) of 8.36%. This is calculated using a Cost of Equity of 8.67% (via CAPM with a beta of 1.05) and a pre-tax Cost of Debt of 3.18%, with an equity weight of 95.01% in the capital structure.

Question 2

Is Applied Industrial Technologies, Inc.'s WACC high or low?

Accepted Answer

Applied Industrial Technologies, Inc.'s WACC of 8.36% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Applied Industrial Technologies, Inc.'s WACC calculated?

Accepted Answer

Applied Industrial Technologies, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.67% is derived from the CAPM model using a beta of 1.05. The pre-tax Cost of Debt (Rd) is 3.18%. The capital structure is 95.01% equity and 4.99% debt.

Applied Industrial Technologies, Inc. (AIT) — WACC 分析

WACC 构成

解读

Applied Industrial Technologies, Inc.（AIT）WACC：8.36%

WACC计算器

Applied Industrial Technologies, Inc.（AIT） WACC 解读

AIT 公司分析

AIT DCF 估值

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