Question 1

What is Harley-Davidson, Inc.'s WACC?

Accepted Answer

Harley-Davidson, Inc. (HOG) has a Weighted Average Cost of Capital (WACC) of 4.00%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 33.65% in the capital structure.

Question 2

Is Harley-Davidson, Inc.'s WACC high or low?

Accepted Answer

Harley-Davidson, Inc.'s WACC of 4.00% 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 Harley-Davidson, Inc.'s WACC calculated?

Accepted Answer

Harley-Davidson, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 33.65% equity and 66.35% debt.

Harley-Davidson, Inc. (HOG) — WACC 分析

WACC 构成

解读

Harley-Davidson, Inc.（HOG）WACC：4.00%

WACC计算器

Harley-Davidson, Inc.（HOG） WACC 解读

HOG 公司分析

HOG DCF 估值

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