Question 1

What is RBC Bearings Incorporated's WACC?

Accepted Answer

RBC Bearings Incorporated (RBC) has a Weighted Average Cost of Capital (WACC) of 5.99%. This is calculated using a Cost of Equity of 6.04% (via CAPM with a beta of 0.08) and a pre-tax Cost of Debt of 6.50%, with an equity weight of 95.34% in the capital structure.

Question 2

Is RBC Bearings Incorporated's WACC high or low?

Accepted Answer

RBC Bearings Incorporated's WACC of 5.99% 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 RBC Bearings Incorporated's WACC calculated?

Accepted Answer

RBC Bearings Incorporated's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.04% is derived from the CAPM model using a beta of 0.08. The pre-tax Cost of Debt (Rd) is 6.50%. The capital structure is 95.34% equity and 4.66% debt.

RBC Bearings Incorporated (RBC) — WACC 分析

WACC 构成

解读

RBC Bearings Incorporated（RBC）WACC：5.99%

WACC计算器

RBC Bearings Incorporated（RBC） WACC 解读

RBC 公司分析

RBC DCF 估值

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