Question 1

What is Element Solutions Inc.'s WACC?

Accepted Answer

Element Solutions Inc. (ESI) has a Weighted Average Cost of Capital (WACC) of 7.64%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.81%, with an equity weight of 81.73% in the capital structure.

Question 2

Is Element Solutions Inc.'s WACC high or low?

Accepted Answer

Element Solutions Inc.'s WACC of 7.64% 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 Element Solutions Inc.'s WACC calculated?

Accepted Answer

Element Solutions Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.81%. The capital structure is 81.73% equity and 18.27% debt.

Element Solutions Inc. (ESI) — WACC 分析

WACC 构成

解读

Element Solutions Inc.（ESI）WACC：7.64%

WACC计算器

Element Solutions Inc.（ESI） WACC 解读

ESI 公司分析

ESI DCF 估值

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