Question 1

What is Brookdale Senior Living, Inc.'s WACC?

Accepted Answer

Brookdale Senior Living, Inc. (BKD) has a Weighted Average Cost of Capital (WACC) of 7.89%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 90.25% in the capital structure.

Question 2

Is Brookdale Senior Living, Inc.'s WACC high or low?

Accepted Answer

Brookdale Senior Living, Inc.'s WACC of 7.89% 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 Brookdale Senior Living, Inc.'s WACC calculated?

Accepted Answer

Brookdale Senior Living, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 90.25% equity and 9.75% debt.

Brookdale Senior Living, Inc. (BKD) — WACC 分析

WACC 构成

解读

Brookdale Senior Living, Inc.（BKD）WACC：7.89%

WACC计算器

Brookdale Senior Living, Inc.（BKD） WACC 解读

BKD 公司分析

BKD DCF 估值

继续做同行对比