Question 1

What is Leggett & Platt, Inc.'s WACC?

Accepted Answer

Leggett & Platt, Inc. (LEG) has a Weighted Average Cost of Capital (WACC) of 6.25%. This is calculated using a Cost of Equity of 8.84% (via CAPM with a beta of 0.97) and a pre-tax Cost of Debt of 4.58%, with an equity weight of 50.45% in the capital structure.

Question 2

Is Leggett & Platt, Inc.'s WACC high or low?

Accepted Answer

Leggett & Platt, Inc.'s WACC of 6.25% 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 Leggett & Platt, Inc.'s WACC calculated?

Accepted Answer

Leggett & Platt, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.84% is derived from the CAPM model using a beta of 0.97. The pre-tax Cost of Debt (Rd) is 4.58%. The capital structure is 50.45% equity and 49.55% debt.

Leggett & Platt, Inc. (LEG) — WACC 分析

WACC 构成

解读

Leggett & Platt, Inc.（LEG）WACC：6.25%

WACC计算器

Leggett & Platt, Inc.（LEG） WACC 解读

LEG 公司分析

LEG DCF 估值

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