Question 1

What is SIFCO Industries, Inc.'s WACC?

Accepted Answer

SIFCO Industries, Inc. (SIF) has a Weighted Average Cost of Capital (WACC) of 7.80%. This is calculated using a Cost of Equity of 7.27% (via CAPM with a beta of 0.44) and a pre-tax Cost of Debt of 28.26%, with an equity weight of 96.46% in the capital structure.

Question 2

Is SIFCO Industries, Inc.'s WACC high or low?

Accepted Answer

SIFCO Industries, Inc.'s WACC of 7.80% 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 SIFCO Industries, Inc.'s WACC calculated?

Accepted Answer

SIFCO Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.27% is derived from the CAPM model using a beta of 0.44. The pre-tax Cost of Debt (Rd) is 28.26%. The capital structure is 96.46% equity and 3.54% debt.

SIFCO Industries, Inc. (SIF) — WACC 分析

WACC 构成

解读

SIFCO Industries, Inc.（SIF）WACC：7.80%

WACC计算器

SIFCO Industries, Inc.（SIF） WACC 解读

SIF 公司分析

SIF DCF 估值

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