Question 1

What is Northrop Grumman Corp.'s WACC?

Accepted Answer

Northrop Grumman Corp. (NOC) has a Weighted Average Cost of Capital (WACC) of 5.92%. This is calculated using a Cost of Equity of 6.35% (via CAPM with a beta of 0.22) and a pre-tax Cost of Debt of 4.24%, with an equity weight of 85.75% in the capital structure.

Question 2

Is Northrop Grumman Corp.'s WACC high or low?

Accepted Answer

Northrop Grumman Corp.'s WACC of 5.92% 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 Northrop Grumman Corp.'s WACC calculated?

Accepted Answer

Northrop Grumman Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.35% is derived from the CAPM model using a beta of 0.22. The pre-tax Cost of Debt (Rd) is 4.24%. The capital structure is 85.75% equity and 14.25% debt.

Northrop Grumman Corp. (NOC) — WACC 分析

WACC 构成

解读

Northrop Grumman Corp.（NOC）WACC：5.92%

WACC计算器

Northrop Grumman Corp.（NOC） WACC 解读

NOC 公司分析

NOC DCF 估值

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