Question 1

What is Alliance Resource Partners LP's WACC?

Accepted Answer

Alliance Resource Partners LP (ARLP) has a Weighted Average Cost of Capital (WACC) of 8.20%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 7.45%, with an equity weight of 87.46% in the capital structure.

Question 2

Is Alliance Resource Partners LP's WACC high or low?

Accepted Answer

Alliance Resource Partners LP's WACC of 8.20% 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 Alliance Resource Partners LP's WACC calculated?

Accepted Answer

Alliance Resource Partners LP's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 7.45%. The capital structure is 87.46% equity and 12.54% debt.

Alliance Resource Partners LP (ARLP) — WACC 分析

WACC 构成

解读

Alliance Resource Partners LP（ARLP）WACC：8.20%

WACC计算器

Alliance Resource Partners LP（ARLP） WACC 解读

ARLP 公司分析

ARLP DCF 估值

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