Question 1

What is Bank of New York Mellon Corporation's WACC?

Accepted Answer

Bank of New York Mellon Corporation (BK) has a Weighted Average Cost of Capital (WACC) of 19.80%. This is calculated using a Cost of Equity of 8.30% (via CAPM with a beta of 0.92) and a pre-tax Cost of Debt of 68.35%, with an equity weight of 74.85% in the capital structure.

Question 2

Is Bank of New York Mellon Corporation's WACC high or low?

Accepted Answer

Bank of New York Mellon Corporation's WACC of 19.80% is above the typical range, indicating higher perceived risk and cost of capital. 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 Bank of New York Mellon Corporation's WACC calculated?

Accepted Answer

Bank of New York Mellon Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.30% is derived from the CAPM model using a beta of 0.92. The pre-tax Cost of Debt (Rd) is 68.35%. The capital structure is 74.85% equity and 25.15% debt.

Bank of New York Mellon Corporation (BK) — WACC 分析

WACC 构成

解读

Bank of New York Mellon Corporation（BK）WACC：19.80%

WACC计算器

Bank of New York Mellon Corporation（BK） WACC 解读

BK 公司分析

BK DCF 估值

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