Question 1

What is DLH Holdings Corp.'s WACC?

Accepted Answer

DLH Holdings Corp. (DLHC) has a Weighted Average Cost of Capital (WACC) of 4.45%. This is calculated using a Cost of Equity of 7.76% (via CAPM with a beta of 0.74) and a pre-tax Cost of Debt of 2.72%, with an equity weight of 41.12% in the capital structure.

Question 2

Is DLH Holdings Corp.'s WACC high or low?

Accepted Answer

DLH Holdings Corp.'s WACC of 4.45% 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 DLH Holdings Corp.'s WACC calculated?

Accepted Answer

DLH Holdings Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.76% is derived from the CAPM model using a beta of 0.74. The pre-tax Cost of Debt (Rd) is 2.72%. The capital structure is 41.12% equity and 58.88% debt.

DLH Holdings Corp. (DLHC) — WACC 分析

WACC 构成

解读

DLH Holdings Corp.（DLHC）WACC：4.45%

WACC计算器

DLH Holdings Corp.（DLHC） WACC 解读

DLHC 公司分析

DLHC DCF 估值

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