Question 1

What is Shift4 Payments, Inc.'s WACC?

Accepted Answer

Shift4 Payments, Inc. (FOUR) has a Weighted Average Cost of Capital (WACC) of 7.20%. This is calculated using a Cost of Equity of 10.69% (via CAPM with a beta of 1.63) and a pre-tax Cost of Debt of 5.01%, with an equity weight of 48.18% in the capital structure.

Question 2

Is Shift4 Payments, Inc.'s WACC high or low?

Accepted Answer

Shift4 Payments, Inc.'s WACC of 7.20% 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 Shift4 Payments, Inc.'s WACC calculated?

Accepted Answer

Shift4 Payments, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.69% is derived from the CAPM model using a beta of 1.63. The pre-tax Cost of Debt (Rd) is 5.01%. The capital structure is 48.18% equity and 51.82% debt.

Shift4 Payments, Inc. (FOUR) — WACC 分析

WACC 构成

解读

Shift4 Payments, Inc.（FOUR）WACC：7.20%

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Shift4 Payments, Inc.（FOUR） WACC 解读

FOUR 公司分析

FOUR DCF 估值

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