Question 1

What is Consumer Portfolio Services's WACC?

Accepted Answer

Consumer Portfolio Services (CPSS) has a Weighted Average Cost of Capital (WACC) of 20.00%. 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 46.55%, with an equity weight of 30.92% in the capital structure.

Question 2

Is Consumer Portfolio Services's WACC high or low?

Accepted Answer

Consumer Portfolio Services's WACC of 20.00% 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 Consumer Portfolio Services's WACC calculated?

Accepted Answer

Consumer Portfolio Services'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 46.55%. The capital structure is 30.92% equity and 69.08% debt.

Consumer Portfolio Services (CPSS) — WACC 分析

WACC 构成

解读

Consumer Portfolio Services（CPSS）WACC：20.00%

WACC计算器

Consumer Portfolio Services（CPSS） WACC 解读

CPSS 公司分析

CPSS DCF 估值

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