Question 1

What is Alaska Air Group, Inc.'s WACC?

Accepted Answer

Alaska Air Group, Inc. (ALK) has a Weighted Average Cost of Capital (WACC) of 7.07%. This is calculated using a Cost of Equity of 9.55% (via CAPM with a beta of 1.36) and a pre-tax Cost of Debt of 5.63%, with an equity weight of 51.55% in the capital structure.

Question 2

Is Alaska Air Group, Inc.'s WACC high or low?

Accepted Answer

Alaska Air Group, Inc.'s WACC of 7.07% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. 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 Alaska Air Group, Inc.'s WACC calculated?

Accepted Answer

Alaska Air Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.55% is derived from the CAPM model using a beta of 1.36. The pre-tax Cost of Debt (Rd) is 5.63%. The capital structure is 51.55% equity and 48.45% debt.

Alaska Air Group, Inc. (ALK) — WACC 分析

WACC 构成

解读

Alaska Air Group, Inc.（ALK）WACC：7.07%

WACC计算器

Alaska Air Group, Inc.（ALK） WACC 解读

ALK 公司分析

ALK DCF 估值

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