Question 1

What is Sturm, Ruger & Company, Inc.'s WACC?

Accepted Answer

Sturm, Ruger & Company, Inc. (RGR) has a Weighted Average Cost of Capital (WACC) of 7.44%. This is calculated using a Cost of Equity of 7.44% (via CAPM with a beta of 0.50) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Sturm, Ruger & Company, Inc.'s WACC high or low?

Accepted Answer

Sturm, Ruger & Company, Inc.'s WACC of 7.44% 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 Sturm, Ruger & Company, Inc.'s WACC calculated?

Accepted Answer

Sturm, Ruger & Company, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.44% is derived from the CAPM model using a beta of 0.50. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Sturm, Ruger & Company, Inc. (RGR) — WACC 分析

WACC 构成

解读

Sturm, Ruger & Company, Inc.（RGR）WACC：7.44%

WACC计算器

Sturm, Ruger & Company, Inc.（RGR） WACC 解读

RGR 公司分析

RGR DCF 估值

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