Question 1

What is Dorman Products, Inc. New's WACC?

Accepted Answer

Dorman Products, Inc. New (DORM) has a Weighted Average Cost of Capital (WACC) of 7.80%. This is calculated using a Cost of Equity of 8.12% (via CAPM with a beta of 0.74) and a pre-tax Cost of Debt of 6.14%, with an equity weight of 90.42% in the capital structure.

Question 2

Is Dorman Products, Inc. New's WACC high or low?

Accepted Answer

Dorman Products, Inc. New's WACC of 7.80% 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 Dorman Products, Inc. New's WACC calculated?

Accepted Answer

Dorman Products, Inc. New'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 0.74. The pre-tax Cost of Debt (Rd) is 6.14%. The capital structure is 90.42% equity and 9.58% debt.

Dorman Products, Inc. New (DORM) — WACC 分析

WACC 构成

解读

Dorman Products, Inc. New（DORM）WACC：7.80%

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Dorman Products, Inc. New（DORM） WACC 解读

DORM 公司分析

DORM DCF 估值

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