Question 1

What is Kaiser Aluminum Corporation's WACC?

Accepted Answer

Kaiser Aluminum Corporation (KALU) has a Weighted Average Cost of Capital (WACC) of 6.78%. This is calculated using a Cost of Equity of 8.46% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.73%, with an equity weight of 64.47% in the capital structure.

Question 2

Is Kaiser Aluminum Corporation's WACC high or low?

Accepted Answer

Kaiser Aluminum Corporation's WACC of 6.78% 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 Kaiser Aluminum Corporation's WACC calculated?

Accepted Answer

Kaiser Aluminum Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.46% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.73%. The capital structure is 64.47% equity and 35.53% debt.

Kaiser Aluminum Corporation (KALU) — WACC 分析

WACC 构成

解读

Kaiser Aluminum Corporation（KALU）WACC：6.78%

WACC计算器

Kaiser Aluminum Corporation（KALU） WACC 解读

KALU 公司分析

KALU DCF 估值

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