Question 1

What is Smith-Midland Corporation Common Stock's WACC?

Accepted Answer

Smith-Midland Corporation Common Stock (SMID) has a Weighted Average Cost of Capital (WACC) of 6.22%. This is calculated using a Cost of Equity of 6.32% (via CAPM with a beta of 0.21) and a pre-tax Cost of Debt of 4.02%, with an equity weight of 96.74% in the capital structure.

Question 2

Is Smith-Midland Corporation Common Stock's WACC high or low?

Accepted Answer

Smith-Midland Corporation Common Stock's WACC of 6.22% 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-Midland Corporation Common Stock's WACC calculated?

Accepted Answer

Smith-Midland Corporation Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.32% is derived from the CAPM model using a beta of 0.21. The pre-tax Cost of Debt (Rd) is 4.02%. The capital structure is 96.74% equity and 3.26% debt.

Smith-Midland Corporation Common Stock (SMID) — WACC 分析

WACC 构成

解读

Smith-Midland Corporation Common Stock（SMID）WACC：6.22%

WACC计算器

Smith-Midland Corporation Common Stock（SMID） WACC 解读

SMID 公司分析

SMID DCF 估值

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