Question 1

What is ALLISON TRANSMISSION HOLDINGS, INC.'s WACC?

Accepted Answer

ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) has a Weighted Average Cost of Capital (WACC) of 7.16%. This is calculated using a Cost of Equity of 8.11% (via CAPM with a beta of 0.85) and a pre-tax Cost of Debt of 3.71%, with an equity weight of 81.63% in the capital structure.

Question 2

Is ALLISON TRANSMISSION HOLDINGS, INC.'s WACC high or low?

Accepted Answer

ALLISON TRANSMISSION HOLDINGS, INC.'s WACC of 7.16% 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 ALLISON TRANSMISSION HOLDINGS, INC.'s WACC calculated?

Accepted Answer

ALLISON TRANSMISSION HOLDINGS, INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.11% is derived from the CAPM model using a beta of 0.85. The pre-tax Cost of Debt (Rd) is 3.71%. The capital structure is 81.63% equity and 18.37% debt.

ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) — WACC 分析

WACC 构成

解读

ALLISON TRANSMISSION HOLDINGS, INC.（ALSN）WACC：7.16%

WACC计算器

ALLISON TRANSMISSION HOLDINGS, INC.（ALSN） WACC 解读

ALSN 公司分析

ALSN DCF 估值

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