Question 1

What is Pilgrims Pride Corporation's WACC?

Accepted Answer

Pilgrims Pride Corporation (PPC) has a Weighted Average Cost of Capital (WACC) of 6.25%. This is calculated using a Cost of Equity of 7.04% (via CAPM with a beta of 0.47) and a pre-tax Cost of Debt of 5.22%, with an equity weight of 72.97% in the capital structure.

Question 2

Is Pilgrims Pride Corporation's WACC high or low?

Accepted Answer

Pilgrims Pride Corporation's WACC of 6.25% 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 Pilgrims Pride Corporation's WACC calculated?

Accepted Answer

Pilgrims Pride Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.04% is derived from the CAPM model using a beta of 0.47. The pre-tax Cost of Debt (Rd) is 5.22%. The capital structure is 72.97% equity and 27.03% debt.

Pilgrims Pride Corporation (PPC) — WACC 分析

WACC 构成

解读

Pilgrims Pride Corporation（PPC）WACC：6.25%

WACC计算器

Pilgrims Pride Corporation（PPC） WACC 解读

PPC 公司分析

PPC DCF 估值

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