Question 1

What is Eastman Chemical Company's WACC?

Accepted Answer

Eastman Chemical Company (EMN) has a Weighted Average Cost of Capital (WACC) of 6.82%. This is calculated using a Cost of Equity of 9.01% (via CAPM with a beta of 1.11) and a pre-tax Cost of Debt of 4.04%, with an equity weight of 62.32% in the capital structure.

Question 2

Is Eastman Chemical Company's WACC high or low?

Accepted Answer

Eastman Chemical Company's WACC of 6.82% 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 Eastman Chemical Company's WACC calculated?

Accepted Answer

Eastman Chemical Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.01% is derived from the CAPM model using a beta of 1.11. The pre-tax Cost of Debt (Rd) is 4.04%. The capital structure is 62.32% equity and 37.68% debt.

Eastman Chemical Company (EMN) — WACC 分析

WACC 构成

解读

Eastman Chemical Company（EMN）WACC：6.82%

WACC计算器

Eastman Chemical Company（EMN） WACC 解读

EMN 公司分析

EMN DCF 估值

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