Question 1

What is Global Water Resources, Inc.'s WACC?

Accepted Answer

Global Water Resources, Inc. (GWRS) has a Weighted Average Cost of Capital (WACC) of 6.95%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.15%, with an equity weight of 65.14% in the capital structure.

Question 2

Is Global Water Resources, Inc.'s WACC high or low?

Accepted Answer

Global Water Resources, Inc.'s WACC of 6.95% 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 Global Water Resources, Inc.'s WACC calculated?

Accepted Answer

Global Water Resources, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.15%. The capital structure is 65.14% equity and 34.86% debt.

Global Water Resources, Inc. (GWRS) — WACC 分析

WACC 构成

解读

Global Water Resources, Inc.（GWRS）WACC：6.95%

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Global Water Resources, Inc.（GWRS） WACC 解读

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GWRS DCF 估值

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