Question 1

What is The Scotts Miracle-Gro Company's WACC?

Accepted Answer

The Scotts Miracle-Gro Company (SMG) has a Weighted Average Cost of Capital (WACC) of 7.17%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.11%, with an equity weight of 63.14% in the capital structure.

Question 2

Is The Scotts Miracle-Gro Company's WACC high or low?

Accepted Answer

The Scotts Miracle-Gro Company's WACC of 7.17% 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 Scotts Miracle-Gro Company's WACC calculated?

Accepted Answer

The Scotts Miracle-Gro Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.11%. The capital structure is 63.14% equity and 36.86% debt.

The Scotts Miracle-Gro Company (SMG) — WACC 分析

WACC 构成

解读

The Scotts Miracle-Gro Company（SMG）WACC：7.17%

WACC计算器

The Scotts Miracle-Gro Company（SMG） WACC 解读

SMG 公司分析

SMG DCF 估值

继续做同行对比