Question 1

What is Karat Packaging Inc. Common Stock's WACC?

Accepted Answer

Karat Packaging Inc. Common Stock (KRT) has a Weighted Average Cost of Capital (WACC) of 7.64%. This is calculated using a Cost of Equity of 8.01% (via CAPM with a beta of 0.81) and a pre-tax Cost of Debt of 4.26%, with an equity weight of 92.02% in the capital structure.

Question 2

Is Karat Packaging Inc. Common Stock's WACC high or low?

Accepted Answer

Karat Packaging Inc. Common Stock's WACC of 7.64% 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 Karat Packaging Inc. Common Stock's WACC calculated?

Accepted Answer

Karat Packaging Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.01% is derived from the CAPM model using a beta of 0.81. The pre-tax Cost of Debt (Rd) is 4.26%. The capital structure is 92.02% equity and 7.98% debt.

Karat Packaging Inc. Common Stock (KRT) — WACC 分析

WACC 构成

解读

Karat Packaging Inc. Common Stock（KRT）WACC：7.64%

WACC计算器

Karat Packaging Inc. Common Stock（KRT） WACC 解读

KRT 公司分析

KRT DCF 估值

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