Question 1

What is Huntington Ingalls Industries, Inc.'s WACC?

Accepted Answer

Huntington Ingalls Industries, Inc. (HII) has a Weighted Average Cost of Capital (WACC) of 6.64%. This is calculated using a Cost of Equity of 7.59% (via CAPM with a beta of 0.57) and a pre-tax Cost of Debt of 3.67%, with an equity weight of 79.82% in the capital structure.

Question 2

Is Huntington Ingalls Industries, Inc.'s WACC high or low?

Accepted Answer

Huntington Ingalls Industries, Inc.'s WACC of 6.64% 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 Huntington Ingalls Industries, Inc.'s WACC calculated?

Accepted Answer

Huntington Ingalls Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.59% is derived from the CAPM model using a beta of 0.57. The pre-tax Cost of Debt (Rd) is 3.67%. The capital structure is 79.82% equity and 20.18% debt.

Huntington Ingalls Industries, Inc. (HII) — WACC 分析

WACC 构成

解读

Huntington Ingalls Industries, Inc.（HII）WACC：6.64%

WACC计算器

Huntington Ingalls Industries, Inc.（HII） WACC 解读

HII 公司分析

HII DCF 估值

继续做同行对比