Question 1

What is Euroseas Ltd.(Marshall Islands)'s WACC?

Accepted Answer

Euroseas Ltd.(Marshall Islands) (ESEA) has a Weighted Average Cost of Capital (WACC) of 7.58%. This is calculated using a Cost of Equity of 8.68% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.70%, with an equity weight of 67.46% in the capital structure.

Question 2

Is Euroseas Ltd.(Marshall Islands)'s WACC high or low?

Accepted Answer

Euroseas Ltd.(Marshall Islands)'s WACC of 7.58% 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 Euroseas Ltd.(Marshall Islands)'s WACC calculated?

Accepted Answer

Euroseas Ltd.(Marshall Islands)'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.70%. The capital structure is 67.46% equity and 32.54% debt.

Euroseas Ltd.(Marshall Islands) (ESEA) — WACC 分析

WACC 构成

解读

Euroseas Ltd.(Marshall Islands)（ESEA）WACC：7.58%

WACC计算器

Euroseas Ltd.(Marshall Islands)（ESEA） WACC 解读

ESEA 公司分析

ESEA DCF 估值

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