Question 1

What is Emerson Electric Co.'s WACC?

Accepted Answer

Emerson Electric Co. (EMR) has a Weighted Average Cost of Capital (WACC) of 7.94%. This is calculated using a Cost of Equity of 9.03% (via CAPM with a beta of 1.08) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 85.36% in the capital structure.

Question 2

Is Emerson Electric Co.'s WACC high or low?

Accepted Answer

Emerson Electric Co.'s WACC of 7.94% 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 Emerson Electric Co.'s WACC calculated?

Accepted Answer

Emerson Electric Co.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.03% is derived from the CAPM model using a beta of 1.08. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 85.36% equity and 14.64% debt.

Emerson Electric Co. (EMR) — WACC 分析

WACC 构成

解读

Emerson Electric Co.（EMR）WACC：7.94%

WACC计算器

Emerson Electric Co.（EMR） WACC 解读

EMR 公司分析

EMR DCF 估值

继续做同行对比