Question 1

What is TopBuild Corp. Common Stock's WACC?

Accepted Answer

TopBuild Corp. Common Stock (BLD) has a Weighted Average Cost of Capital (WACC) of 8.03%. 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 5.31%, with an equity weight of 88.35% in the capital structure.

Question 2

Is TopBuild Corp. Common Stock's WACC high or low?

Accepted Answer

TopBuild Corp. Common Stock's WACC of 8.03% 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 TopBuild Corp. Common Stock's WACC calculated?

Accepted Answer

TopBuild Corp. Common Stock'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 5.31%. The capital structure is 88.35% equity and 11.65% debt.

TopBuild Corp. Common Stock (BLD) — WACC 分析

WACC 构成

解读

TopBuild Corp. Common Stock（BLD）WACC：8.03%

WACC计算器

TopBuild Corp. Common Stock（BLD） WACC 解读

BLD 公司分析

BLD DCF 估值

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