Question 1

What is Costco Wholesale Corp's WACC?

Accepted Answer

Costco Wholesale Corp (COST) has a Weighted Average Cost of Capital (WACC) of 7.94%. This is calculated using a Cost of Equity of 8.01% (via CAPM with a beta of 0.72) and a pre-tax Cost of Debt of 2.59%, with an equity weight of 98.75% in the capital structure.

Question 2

Is Costco Wholesale Corp's WACC high or low?

Accepted Answer

Costco Wholesale Corp's WACC of 7.94% 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 Costco Wholesale Corp's WACC calculated?

Accepted Answer

Costco Wholesale Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.01% is derived from the CAPM model using a beta of 0.72. The pre-tax Cost of Debt (Rd) is 2.59%. The capital structure is 98.75% equity and 1.25% debt.

Costco Wholesale Corp (COST) — WACC 分析

WACC 构成

解读

Costco Wholesale Corp（COST）WACC：7.94%

WACC计算器

Costco Wholesale Corp（COST） WACC 解读

COST 公司分析

COST DCF 估值

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