Question 1

What is Armstrong World Industries, Inc.'s WACC?

Accepted Answer

Armstrong World Industries, Inc. (AWI) has a Weighted Average Cost of Capital (WACC) of 8.22%. This is calculated using a Cost of Equity of 8.38% (via CAPM with a beta of 0.94) and a pre-tax Cost of Debt of 7.58%, with an equity weight of 93.40% in the capital structure.

Question 2

Is Armstrong World Industries, Inc.'s WACC high or low?

Accepted Answer

Armstrong World Industries, Inc.'s WACC of 8.22% 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 Armstrong World Industries, Inc.'s WACC calculated?

Accepted Answer

Armstrong World Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.38% is derived from the CAPM model using a beta of 0.94. The pre-tax Cost of Debt (Rd) is 7.58%. The capital structure is 93.40% equity and 6.60% debt.

Armstrong World Industries, Inc. (AWI) — WACC 分析

WACC 构成

解读

Armstrong World Industries, Inc.（AWI）WACC：8.22%

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Armstrong World Industries, Inc.（AWI） WACC 解读

AWI 公司分析

AWI DCF 估值

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