Question 1

What is Central Pacific Financial Corporation's WACC?

Accepted Answer

Central Pacific Financial Corporation (CPF) has a Weighted Average Cost of Capital (WACC) of 12.85%. This is calculated using a Cost of Equity of 8.33% (via CAPM with a beta of 0.79) and a pre-tax Cost of Debt of 90.81%, with an equity weight of 92.87% in the capital structure.

Question 2

Is Central Pacific Financial Corporation's WACC high or low?

Accepted Answer

Central Pacific Financial Corporation's WACC of 12.85% 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 Central Pacific Financial Corporation's WACC calculated?

Accepted Answer

Central Pacific Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.33% is derived from the CAPM model using a beta of 0.79. The pre-tax Cost of Debt (Rd) is 90.81%. The capital structure is 92.87% equity and 7.13% debt.

Central Pacific Financial Corporation (CPF) — WACC 分析

WACC 构成

解读

Central Pacific Financial Corporation（CPF）WACC：12.85%

WACC计算器

Central Pacific Financial Corporation（CPF） WACC 解读

CPF 公司分析

CPF DCF 估值

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