Question 1

What is Purple Innovation, Inc. Common Stock's WACC?

Accepted Answer

Purple Innovation, Inc. Common Stock (PRPL) has a Weighted Average Cost of Capital (WACC) of 15.26%. 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 21.28%, with an equity weight of 47.21% in the capital structure.

Question 2

Is Purple Innovation, Inc. Common Stock's WACC high or low?

Accepted Answer

Purple Innovation, Inc. Common Stock's WACC of 15.26% is above the typical range, indicating higher perceived risk and cost of capital. 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 Purple Innovation, Inc. Common Stock's WACC calculated?

Accepted Answer

Purple Innovation, Inc. Common Stock'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 21.28%. The capital structure is 47.21% equity and 52.79% debt.

Purple Innovation, Inc. Common Stock (PRPL) — WACC 分析

WACC 构成

解读

Purple Innovation, Inc. Common Stock（PRPL）WACC：15.26%

WACC计算器

Purple Innovation, Inc. Common Stock（PRPL） WACC 解读

PRPL 公司分析

PRPL DCF 估值

继续做同行对比