Question 1

What is Southside Bancshares, Inc.'s WACC?

Accepted Answer

Southside Bancshares, Inc. (SBSI) has a Weighted Average Cost of Capital (WACC) of 20.00%. This is calculated using a Cost of Equity of 7.11% (via CAPM with a beta of 0.68) and a pre-tax Cost of Debt of 130.13%, with an equity weight of 85.51% in the capital structure.

Question 2

Is Southside Bancshares, Inc.'s WACC high or low?

Accepted Answer

Southside Bancshares, Inc.'s WACC of 20.00% 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 Southside Bancshares, Inc.'s WACC calculated?

Accepted Answer

Southside Bancshares, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.11% is derived from the CAPM model using a beta of 0.68. The pre-tax Cost of Debt (Rd) is 130.13%. The capital structure is 85.51% equity and 14.49% debt.

Southside Bancshares, Inc. (SBSI) — WACC 分析

WACC 构成

解读

Southside Bancshares, Inc.（SBSI）WACC：20.00%

WACC计算器

Southside Bancshares, Inc.（SBSI） WACC 解读

SBSI 公司分析

SBSI DCF 估值

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