Question 1

What is PPG Industries, Inc.'s WACC?

Accepted Answer

PPG Industries, Inc. (PPG) has a Weighted Average Cost of Capital (WACC) of 7.53%. This is calculated using a Cost of Equity of 8.70% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.82%, with an equity weight of 79.48% in the capital structure.

Question 2

Is PPG Industries, Inc.'s WACC high or low?

Accepted Answer

PPG Industries, Inc.'s WACC of 7.53% 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 PPG Industries, Inc.'s WACC calculated?

Accepted Answer

PPG Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.70% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.82%. The capital structure is 79.48% equity and 20.52% debt.

PPG Industries, Inc. (PPG) — WACC 分析

WACC 构成

解读

PPG Industries, Inc.（PPG）WACC：7.53%

WACC计算器

PPG Industries, Inc.（PPG） WACC 解读

PPG 公司分析

PPG DCF 估值

继续做同行对比