Question 1

What is American Vanguard Corporation's WACC?

Accepted Answer

American Vanguard Corporation (AVD) has a Weighted Average Cost of Capital (WACC) of 7.78%. This is calculated using a Cost of Equity of 8.12% (via CAPM with a beta of 0.80) and a pre-tax Cost of Debt of 7.69%, with an equity weight of 21.68% in the capital structure.

Question 2

Is American Vanguard Corporation's WACC high or low?

Accepted Answer

American Vanguard Corporation's WACC of 7.78% 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 American Vanguard Corporation's WACC calculated?

Accepted Answer

American Vanguard Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.12% is derived from the CAPM model using a beta of 0.80. The pre-tax Cost of Debt (Rd) is 7.69%. The capital structure is 21.68% equity and 78.32% debt.

American Vanguard Corporation (AVD) — WACC 分析

WACC 构成

解读

American Vanguard Corporation（AVD）WACC：7.78%

WACC计算器

American Vanguard Corporation（AVD） WACC 解读

AVD 公司分析

AVD DCF 估值

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