Question 1

What is RPM International, Inc.'s WACC?

Accepted Answer

RPM International, Inc. (RPM) has a Weighted Average Cost of Capital (WACC) of 7.37%. This is calculated using a Cost of Equity of 8.22% (via CAPM with a beta of 0.89) and a pre-tax Cost of Debt of 3.65%, with an equity weight of 84.12% in the capital structure.

Question 2

Is RPM International, Inc.'s WACC high or low?

Accepted Answer

RPM International, Inc.'s WACC of 7.37% 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 RPM International, Inc.'s WACC calculated?

Accepted Answer

RPM International, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.22% is derived from the CAPM model using a beta of 0.89. The pre-tax Cost of Debt (Rd) is 3.65%. The capital structure is 84.12% equity and 15.88% debt.

RPM International, Inc. (RPM) — WACC 分析

WACC 构成

解读

RPM International, Inc.（RPM）WACC：7.37%

WACC计算器

RPM International, Inc.（RPM） WACC 解读

RPM 公司分析

RPM DCF 估值

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