Question 1

What is L3Harris Technologies, Inc.'s WACC?

Accepted Answer

L3Harris Technologies, Inc. (LHX) has a Weighted Average Cost of Capital (WACC) of 6.19%. This is calculated using a Cost of Equity of 6.97% (via CAPM with a beta of 0.44) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 85.48% in the capital structure.

Question 2

Is L3Harris Technologies, Inc.'s WACC high or low?

Accepted Answer

L3Harris Technologies, Inc.'s WACC of 6.19% 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 L3Harris Technologies, Inc.'s WACC calculated?

Accepted Answer

L3Harris Technologies, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.97% is derived from the CAPM model using a beta of 0.44. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 85.48% equity and 14.52% debt.

L3Harris Technologies, Inc. (LHX) — WACC 分析

WACC 构成

解读

L3Harris Technologies, Inc.（LHX）WACC：6.19%

WACC计算器

L3Harris Technologies, Inc.（LHX） WACC 解读

LHX 公司分析

LHX DCF 估值

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