Question 1

What is Iridium Communications Inc.'s WACC?

Accepted Answer

Iridium Communications Inc. (IRDM) has a Weighted Average Cost of Capital (WACC) of 6.55%. 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 71.53% in the capital structure.

Question 2

Is Iridium Communications Inc.'s WACC high or low?

Accepted Answer

Iridium Communications Inc.'s WACC of 6.55% 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 Iridium Communications Inc.'s WACC calculated?

Accepted Answer

Iridium Communications 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 71.53% equity and 28.47% debt.

Iridium Communications Inc. (IRDM) — WACC 分析

WACC 构成

解读

Iridium Communications Inc.（IRDM）WACC：6.55%

WACC计算器

Iridium Communications Inc.（IRDM） WACC 解读

IRDM 公司分析

IRDM DCF 估值

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