Q: What is Elanco Animal Health Incorporated Common Stock's WACC?

Elanco Animal Health Incorporated Common Stock (ELAN) has a Weighted Average Cost of Capital (WACC) of 7.43%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.44%, with an equity weight of 72.23% in the capital structure.

Q: Is Elanco Animal Health Incorporated Common Stock's WACC high or low?

Elanco Animal Health Incorporated Common Stock's WACC of 7.43% 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.

Q: How is Elanco Animal Health Incorporated Common Stock's WACC calculated?

Elanco Animal Health Incorporated Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.44%. The capital structure is 72.23% equity and 27.77% debt.

Question 1

What is Elanco Animal Health Incorporated Common Stock's WACC?

Accepted Answer

Elanco Animal Health Incorporated Common Stock（ELAN） WACC 解读

Elanco Animal Health Incorporated Common Stock（ELAN）当前估算的 WACC 为 7.43%。其中股权成本为 8.63%，税前债务成本为 5.44%，股权权重为 72.23%。这个折现率可以直接作为 DCF 估值和资本结构判断的起点。

处于相对较低区间，通常意味着资本成本较低、估值折现压力更小。

Question 2

Is Elanco Animal Health Incorporated Common Stock's WACC high or low?

Accepted Answer

Elanco Animal Health Incorporated Common Stock（ELAN） WACC 解读

Elanco Animal Health Incorporated Common Stock（ELAN）当前估算的 WACC 为 7.43%。其中股权成本为 8.63%，税前债务成本为 5.44%，股权权重为 72.23%。这个折现率可以直接作为 DCF 估值和资本结构判断的起点。

处于相对较低区间，通常意味着资本成本较低、估值折现压力更小。

Question 3

How is Elanco Animal Health Incorporated Common Stock's WACC calculated?

Accepted Answer

Elanco Animal Health Incorporated Common Stock（ELAN） WACC 解读

Elanco Animal Health Incorporated Common Stock（ELAN）当前估算的 WACC 为 7.43%。其中股权成本为 8.63%，税前债务成本为 5.44%，股权权重为 72.23%。这个折现率可以直接作为 DCF 估值和资本结构判断的起点。

处于相对较低区间，通常意味着资本成本较低、估值折现压力更小。

Elanco Animal Health Incorporated Common Stock (ELAN) — WACC 分析

WACC 构成

解读

Elanco Animal Health Incorporated Common Stock（ELAN）WACC：7.43%

WACC计算器

Elanco Animal Health Incorporated Common Stock（ELAN） WACC 解读

ELAN 公司分析

ELAN DCF 估值

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