Question 1

What is DOUGLAS DYNAMICS, INC.'s WACC?

Accepted Answer

DOUGLAS DYNAMICS, INC. (PLOW) has a Weighted Average Cost of Capital (WACC) of 7.26%. This is calculated using a Cost of Equity of 8.04% (via CAPM with a beta of 0.84) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 87.97% in the capital structure.

Question 2

Is DOUGLAS DYNAMICS, INC.'s WACC high or low?

Accepted Answer

DOUGLAS DYNAMICS, INC.'s WACC of 7.26% 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 DOUGLAS DYNAMICS, INC.'s WACC calculated?

Accepted Answer

DOUGLAS DYNAMICS, INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.04% is derived from the CAPM model using a beta of 0.84. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 87.97% equity and 12.03% debt.

DOUGLAS DYNAMICS, INC. (PLOW) — WACC 分析

WACC 构成

解读

DOUGLAS DYNAMICS, INC.（PLOW）WACC：7.26%

WACC计算器

DOUGLAS DYNAMICS, INC.（PLOW） WACC 解读

PLOW 公司分析

PLOW DCF 估值

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