Question 1

What is Capstone Holding Corp. Common Stock's WACC?

Accepted Answer

Capstone Holding Corp. Common Stock (CAPS) has a Weighted Average Cost of Capital (WACC) of 14.57%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 18.13%, with an equity weight of 36.96% in the capital structure.

Question 2

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

Accepted Answer

Capstone Holding Corp. Common Stock's WACC of 14.57% 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 Capstone Holding Corp. Common Stock's WACC calculated?

Accepted Answer

Capstone Holding 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 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 18.13%. The capital structure is 36.96% equity and 63.04% debt.

Capstone Holding Corp. Common Stock (CAPS) — WACC 分析

WACC 构成

解读

Capstone Holding Corp. Common Stock（CAPS）WACC：14.57%

WACC计算器

Capstone Holding Corp. Common Stock（CAPS） WACC 解读

CAPS 公司分析

CAPS DCF 估值

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