Question 1

What is Chemed Corporation's WACC?

Accepted Answer

Chemed Corporation (CHE) has a Weighted Average Cost of Capital (WACC) of 7.03%. This is calculated using a Cost of Equity of 7.10% (via CAPM with a beta of 0.38) and a pre-tax Cost of Debt of 2.12%, with an equity weight of 98.62% in the capital structure.

Question 2

Is Chemed Corporation's WACC high or low?

Accepted Answer

Chemed Corporation's WACC of 7.03% 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 Chemed Corporation's WACC calculated?

Accepted Answer

Chemed Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.10% is derived from the CAPM model using a beta of 0.38. The pre-tax Cost of Debt (Rd) is 2.12%. The capital structure is 98.62% equity and 1.38% debt.

Chemed Corporation (CHE) — WACC 分析

WACC 构成

解读

Chemed Corporation（CHE）WACC：7.03%

WACC计算器

Chemed Corporation（CHE） WACC 解读

CHE 公司分析

CHE DCF 估值

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