Question 1

What is Eagle Materials, Inc.'s WACC?

Accepted Answer

Eagle Materials, Inc. (EXP) has a Weighted Average Cost of Capital (WACC) of 7.44%. This is calculated using a Cost of Equity of 8.46% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.27%, with an equity weight of 82.62% in the capital structure.

Question 2

Is Eagle Materials, Inc.'s WACC high or low?

Accepted Answer

Eagle Materials, Inc.'s WACC of 7.44% 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 Eagle Materials, Inc.'s WACC calculated?

Accepted Answer

Eagle Materials, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.46% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.27%. The capital structure is 82.62% equity and 17.38% debt.

Eagle Materials, Inc. (EXP) — WACC 分析

WACC 构成

解读

Eagle Materials, Inc.（EXP）WACC：7.44%

WACC计算器

Eagle Materials, Inc.（EXP） WACC 解读

EXP 公司分析

EXP DCF 估值

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