Question 1

What is Park-Ohio Holdings Corp's WACC?

Accepted Answer

Park-Ohio Holdings Corp (PKOH) has a Weighted Average Cost of Capital (WACC) of 7.36%. This is calculated using a Cost of Equity of 9.05% (via CAPM with a beta of 1.07) and a pre-tax Cost of Debt of 7.55%, with an equity weight of 45.11% in the capital structure.

Question 2

Is Park-Ohio Holdings Corp's WACC high or low?

Accepted Answer

Park-Ohio Holdings Corp's WACC of 7.36% 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 Park-Ohio Holdings Corp's WACC calculated?

Accepted Answer

Park-Ohio Holdings Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.05% is derived from the CAPM model using a beta of 1.07. The pre-tax Cost of Debt (Rd) is 7.55%. The capital structure is 45.11% equity and 54.89% debt.

Park-Ohio Holdings Corp (PKOH) — WACC 分析

WACC 构成

解读

Park-Ohio Holdings Corp（PKOH）WACC：7.36%

WACC计算器

Park-Ohio Holdings Corp（PKOH） WACC 解读

PKOH 公司分析

PKOH DCF 估值

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