Question 1

What is Perma-Pipe International Holdings, Inc.'s WACC?

Accepted Answer

Perma-Pipe International Holdings, Inc. (PPIH) has a Weighted Average Cost of Capital (WACC) of 8.75%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 17.21%, with an equity weight of 95.67% in the capital structure.

Question 2

Is Perma-Pipe International Holdings, Inc.'s WACC high or low?

Accepted Answer

Perma-Pipe International Holdings, Inc.'s WACC of 8.75% falls within the typical 8-12% range for mid-cap growth companies. 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 Perma-Pipe International Holdings, Inc.'s WACC calculated?

Accepted Answer

Perma-Pipe International Holdings, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 17.21%. The capital structure is 95.67% equity and 4.33% debt.

Perma-Pipe International Holdings, Inc. (PPIH) — WACC 分析

WACC 构成

解读

Perma-Pipe International Holdings, Inc.（PPIH）WACC：8.75%

WACC计算器

Perma-Pipe International Holdings, Inc.（PPIH） WACC 解读

PPIH 公司分析

PPIH DCF 估值

继续做同行对比