Question 1

What is Mohawk Industries, Inc.'s WACC?

Accepted Answer

Mohawk Industries, Inc. (MHK) has a Weighted Average Cost of Capital (WACC) of 6.78%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.17%, with an equity weight of 74.28% in the capital structure.

Question 2

Is Mohawk Industries, Inc.'s WACC high or low?

Accepted Answer

Mohawk Industries, Inc.'s WACC of 6.78% 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 Mohawk Industries, Inc.'s WACC calculated?

Accepted Answer

Mohawk Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.17%. The capital structure is 74.28% equity and 25.72% debt.

Mohawk Industries, Inc. (MHK) — WACC 分析

WACC 构成

解读

Mohawk Industries, Inc.（MHK）WACC：6.78%

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Mohawk Industries, Inc.（MHK） WACC 解读

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