Question 1

What is Gates Industrial Corporation plc's WACC?

Accepted Answer

Gates Industrial Corporation plc (GTES) has a Weighted Average Cost of Capital (WACC) of 8.26%. This is calculated using a Cost of Equity of 9.53% (via CAPM with a beta of 1.24) and a pre-tax Cost of Debt of 5.66%, with an equity weight of 74.94% in the capital structure.

Question 2

Is Gates Industrial Corporation plc's WACC high or low?

Accepted Answer

Gates Industrial Corporation plc's WACC of 8.26% falls within the typical 8-12% range for mid-cap growth companies. 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 Gates Industrial Corporation plc's WACC calculated?

Accepted Answer

Gates Industrial Corporation plc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.53% is derived from the CAPM model using a beta of 1.24. The pre-tax Cost of Debt (Rd) is 5.66%. The capital structure is 74.94% equity and 25.06% debt.

Gates Industrial Corporation plc (GTES) — WACC 分析

WACC 构成

解读

Gates Industrial Corporation plc（GTES）WACC：8.26%

WACC计算器

Gates Industrial Corporation plc（GTES） WACC 解读

GTES 公司分析

GTES DCF 估值

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