Question 1

What is INSTALLED BUILDING PRODUCTS, INC.'s WACC?

Accepted Answer

INSTALLED BUILDING PRODUCTS, INC. (IBP) has a Weighted Average Cost of Capital (WACC) of 7.89%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.15%, with an equity weight of 84.84% in the capital structure.

Question 2

Is INSTALLED BUILDING PRODUCTS, INC.'s WACC high or low?

Accepted Answer

INSTALLED BUILDING PRODUCTS, INC.'s WACC of 7.89% 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 INSTALLED BUILDING PRODUCTS, INC.'s WACC calculated?

Accepted Answer

INSTALLED BUILDING PRODUCTS, INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.15%. The capital structure is 84.84% equity and 15.16% debt.

INSTALLED BUILDING PRODUCTS, INC. (IBP) — WACC 分析

WACC 构成

解读

INSTALLED BUILDING PRODUCTS, INC.（IBP）WACC：7.89%

WACC计算器

INSTALLED BUILDING PRODUCTS, INC.（IBP） WACC 解读

IBP 公司分析

IBP DCF 估值

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