Question 1

What is Booz Allen Hamilton Holding Corporation's WACC?

Accepted Answer

Booz Allen Hamilton Holding Corporation (BAH) has a Weighted Average Cost of Capital (WACC) of 6.07%. This is calculated using a Cost of Equity of 7.08% (via CAPM with a beta of 0.45) and a pre-tax Cost of Debt of 4.65%, with an equity weight of 70.26% in the capital structure.

Question 2

Is Booz Allen Hamilton Holding Corporation's WACC high or low?

Accepted Answer

Booz Allen Hamilton Holding Corporation's WACC of 6.07% 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 Booz Allen Hamilton Holding Corporation's WACC calculated?

Accepted Answer

Booz Allen Hamilton Holding Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.08% is derived from the CAPM model using a beta of 0.45. The pre-tax Cost of Debt (Rd) is 4.65%. The capital structure is 70.26% equity and 29.74% debt.

Booz Allen Hamilton Holding Corporation (BAH) — WACC 分析

WACC 构成

解读

Booz Allen Hamilton Holding Corporation（BAH）WACC：6.07%

WACC计算器

Booz Allen Hamilton Holding Corporation（BAH） WACC 解读

BAH 公司分析

BAH DCF 估值

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