Question 1

What is Methode Electronics's WACC?

Accepted Answer

Methode Electronics (MEI) has a Weighted Average Cost of Capital (WACC) of 7.88%. This is calculated using a Cost of Equity of 9.03% (via CAPM with a beta of 1.19) and a pre-tax Cost of Debt of 6.93%, with an equity weight of 45.22% in the capital structure.

Question 2

Is Methode Electronics's WACC high or low?

Accepted Answer

Methode Electronics's WACC of 7.88% 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 Methode Electronics's WACC calculated?

Accepted Answer

Methode Electronics's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.03% is derived from the CAPM model using a beta of 1.19. The pre-tax Cost of Debt (Rd) is 6.93%. The capital structure is 45.22% equity and 54.78% debt.

Methode Electronics (MEI) — WACC 分析

WACC 构成

解读

Methode Electronics（MEI）WACC：7.88%

WACC计算器

Methode Electronics（MEI） WACC 解读

MEI 公司分析

MEI DCF 估值

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