Question 1

What is The J.M. Smucker Company's WACC?

Accepted Answer

The J.M. Smucker Company (SJM) has a Weighted Average Cost of Capital (WACC) of 4.84%. This is calculated using a Cost of Equity of 6.43% (via CAPM with a beta of 0.16) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 64.13% in the capital structure.

Question 2

Is The J.M. Smucker Company's WACC high or low?

Accepted Answer

The J.M. Smucker Company's WACC of 4.84% 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 The J.M. Smucker Company's WACC calculated?

Accepted Answer

The J.M. Smucker Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.43% is derived from the CAPM model using a beta of 0.16. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 64.13% equity and 35.87% debt.

The J.M. Smucker Company (SJM) — WACC 分析

WACC 构成

解读

The J.M. Smucker Company（SJM）WACC：4.84%

WACC计算器

The J.M. Smucker Company（SJM） WACC 解读

SJM 公司分析

SJM DCF 估值

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