Question 1

What is A.O. Smith Corporation's WACC?

Accepted Answer

A.O. Smith Corporation (AOS) has a Weighted Average Cost of Capital (WACC) of 7.93%. This is calculated using a Cost of Equity of 8.35% (via CAPM with a beta of 0.84) and a pre-tax Cost of Debt of 2.87%, with an equity weight of 93.13% in the capital structure.

Question 2

Is A.O. Smith Corporation's WACC high or low?

Accepted Answer

A.O. Smith Corporation's WACC of 7.93% 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 A.O. Smith Corporation's WACC calculated?

Accepted Answer

A.O. Smith Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.35% is derived from the CAPM model using a beta of 0.84. The pre-tax Cost of Debt (Rd) is 2.87%. The capital structure is 93.13% equity and 6.87% debt.

A.O. Smith Corporation (AOS) — WACC 分析

WACC 构成

解读

A.O. Smith Corporation（AOS）WACC：7.93%

WACC计算器

A.O. Smith Corporation（AOS） WACC 解读

AOS 公司分析

AOS DCF 估值

继续做同行对比