Question 1

What is Arts-Way Manufacturing Co Inc's WACC?

Accepted Answer

Arts-Way Manufacturing Co Inc (ARTW) has a Weighted Average Cost of Capital (WACC) of 7.74%. This is calculated using a Cost of Equity of 6.79% (via CAPM with a beta of 0.33) and a pre-tax Cost of Debt of 16.39%, with an equity weight of 84.51% in the capital structure.

Question 2

Is Arts-Way Manufacturing Co Inc's WACC high or low?

Accepted Answer

Arts-Way Manufacturing Co Inc's WACC of 7.74% 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 Arts-Way Manufacturing Co Inc's WACC calculated?

Accepted Answer

Arts-Way Manufacturing Co Inc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.79% is derived from the CAPM model using a beta of 0.33. The pre-tax Cost of Debt (Rd) is 16.39%. The capital structure is 84.51% equity and 15.49% debt.

Arts-Way Manufacturing Co Inc (ARTW) — WACC 分析

WACC 构成

解读

Arts-Way Manufacturing Co Inc（ARTW）WACC：7.74%

WACC计算器

Arts-Way Manufacturing Co Inc（ARTW） WACC 解读

ARTW 公司分析

ARTW DCF 估值

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