Question 1

What is Children's Place, Inc.'s WACC?

Accepted Answer

Children's Place, Inc. (PLCE) has a Weighted Average Cost of Capital (WACC) of 7.85%. This is calculated using a Cost of Equity of 11.42% (via CAPM with a beta of 1.70) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 62.03% in the capital structure.

Question 2

Is Children's Place, Inc.'s WACC high or low?

Accepted Answer

Children's Place, Inc.'s WACC of 7.85% 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 Children's Place, Inc.'s WACC calculated?

Accepted Answer

Children's Place, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 11.42% is derived from the CAPM model using a beta of 1.70. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 62.03% equity and 37.97% debt.

Children's Place, Inc. (PLCE) — WACC 分析

WACC 构成

解读

Children's Place, Inc.（PLCE）WACC：7.85%

WACC计算器

Children's Place, Inc.（PLCE） WACC 解读

PLCE 公司分析

PLCE DCF 估值

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