Question 1

What is FLEX LNG Ltd. Ordinary Shares's WACC?

Accepted Answer

FLEX LNG Ltd. Ordinary Shares (FLNG) has a Weighted Average Cost of Capital (WACC) of 5.72%. This is calculated using a Cost of Equity of 7.72% (via CAPM with a beta of 0.60) and a pre-tax Cost of Debt of 5.01%, with an equity weight of 46.84% in the capital structure.

Question 2

Is FLEX LNG Ltd. Ordinary Shares's WACC high or low?

Accepted Answer

FLEX LNG Ltd. Ordinary Shares's WACC of 5.72% 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 FLEX LNG Ltd. Ordinary Shares's WACC calculated?

Accepted Answer

FLEX LNG Ltd. Ordinary Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.72% is derived from the CAPM model using a beta of 0.60. The pre-tax Cost of Debt (Rd) is 5.01%. The capital structure is 46.84% equity and 53.16% debt.

FLEX LNG Ltd. Ordinary Shares (FLNG) — WACC 分析

WACC 构成

解读

FLEX LNG Ltd. Ordinary Shares（FLNG）WACC：5.72%

WACC计算器

FLEX LNG Ltd. Ordinary Shares（FLNG） WACC 解读

FLNG 公司分析

FLNG DCF 估值

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