Question 1

What is Monster Beverage Corporation's WACC?

Accepted Answer

Monster Beverage Corporation (MNST) has a Weighted Average Cost of Capital (WACC) of 7.37%. This is calculated using a Cost of Equity of 7.40% (via CAPM with a beta of 0.60) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 99.50% in the capital structure.

Question 2

Is Monster Beverage Corporation's WACC high or low?

Accepted Answer

Monster Beverage Corporation's WACC of 7.37% 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 Monster Beverage Corporation's WACC calculated?

Accepted Answer

Monster Beverage Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.40% is derived from the CAPM model using a beta of 0.60. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 99.50% equity and 0.50% debt.

Monster Beverage Corporation (MNST) — WACC 分析

WACC 构成

解读

Monster Beverage Corporation（MNST）WACC：7.37%

WACC计算器

Monster Beverage Corporation（MNST） WACC 解读

MNST 公司分析

MNST DCF 估值

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