Question 1

What is Smith Douglas Homes Corp.'s WACC?

Accepted Answer

Smith Douglas Homes Corp. (SDHC) has a Weighted Average Cost of Capital (WACC) of 6.96%. This is calculated using a Cost of Equity of 8.57% (via CAPM with a beta of 0.90) and a pre-tax Cost of Debt of 4.93%, with an equity weight of 65.67% in the capital structure.

Question 2

Is Smith Douglas Homes Corp.'s WACC high or low?

Accepted Answer

Smith Douglas Homes Corp.'s WACC of 6.96% 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 Smith Douglas Homes Corp.'s WACC calculated?

Accepted Answer

Smith Douglas Homes Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.57% is derived from the CAPM model using a beta of 0.90. The pre-tax Cost of Debt (Rd) is 4.93%. The capital structure is 65.67% equity and 34.33% debt.

Smith Douglas Homes Corp. (SDHC) — WACC 分析

WACC 构成

解读

Smith Douglas Homes Corp.（SDHC）WACC：6.96%

WACC计算器

Smith Douglas Homes Corp.（SDHC） WACC 解读

SDHC 公司分析

SDHC DCF 估值

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