Question 1

What is Donaldson Company, Inc.'s WACC?

Accepted Answer

Donaldson Company, Inc. (DCI) has a Weighted Average Cost of Capital (WACC) of 7.83%. This is calculated using a Cost of Equity of 8.12% (via CAPM with a beta of 0.87) and a pre-tax Cost of Debt of 3.80%, with an equity weight of 94.19% in the capital structure.

Question 2

Is Donaldson Company, Inc.'s WACC high or low?

Accepted Answer

Donaldson Company, Inc.'s WACC of 7.83% 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 Donaldson Company, Inc.'s WACC calculated?

Accepted Answer

Donaldson Company, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.12% is derived from the CAPM model using a beta of 0.87. The pre-tax Cost of Debt (Rd) is 3.80%. The capital structure is 94.19% equity and 5.81% debt.

Donaldson Company, Inc. (DCI) — WACC 分析

WACC 构成

解读

Donaldson Company, Inc.（DCI）WACC：7.83%

WACC计算器

Donaldson Company, Inc.（DCI） WACC 解读

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