Question 1

What is Masco Corporation's WACC?

Accepted Answer

Masco Corporation (MAS) has a Weighted Average Cost of Capital (WACC) of 7.50%. This is calculated using a Cost of Equity of 8.55% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.43%, with an equity weight of 82.09% in the capital structure.

Question 2

Is Masco Corporation's WACC high or low?

Accepted Answer

Masco Corporation's WACC of 7.50% 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 Masco Corporation's WACC calculated?

Accepted Answer

Masco Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.55% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.43%. The capital structure is 82.09% equity and 17.91% debt.

Masco Corporation (MAS) — WACC 分析

WACC 构成

解读

Masco Corporation（MAS）WACC：7.50%

WACC计算器

Masco Corporation（MAS） WACC 解读

MAS 公司分析

MAS DCF 估值

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