Question 1

What is OceanFirst Financial Corp's WACC?

Accepted Answer

OceanFirst Financial Corp (OCFC) has a Weighted Average Cost of Capital (WACC) of 6.35%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.54%, with an equity weight of 52.53% in the capital structure.

Question 2

Is OceanFirst Financial Corp's WACC high or low?

Accepted Answer

OceanFirst Financial Corp's WACC of 6.35% 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 OceanFirst Financial Corp's WACC calculated?

Accepted Answer

OceanFirst Financial Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.54%. The capital structure is 52.53% equity and 47.47% debt.

OceanFirst Financial Corp (OCFC) — WACC 分析

WACC 构成

解读

OceanFirst Financial Corp（OCFC）WACC：6.35%

WACC计算器

OceanFirst Financial Corp（OCFC） WACC 解读

OCFC 公司分析

OCFC DCF 估值

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