Question 1

What is Spectrum Brands Holdings, Inc.'s WACC?

Accepted Answer

Spectrum Brands Holdings, Inc. (SPB) has a Weighted Average Cost of Capital (WACC) of 7.13%. This is calculated using a Cost of Equity of 8.16% (via CAPM with a beta of 0.93) and a pre-tax Cost of Debt of 5.16%, with an equity weight of 74.75% in the capital structure.

Question 2

Is Spectrum Brands Holdings, Inc.'s WACC high or low?

Accepted Answer

Spectrum Brands Holdings, Inc.'s WACC of 7.13% 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 Spectrum Brands Holdings, Inc.'s WACC calculated?

Accepted Answer

Spectrum Brands Holdings, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.16% is derived from the CAPM model using a beta of 0.93. The pre-tax Cost of Debt (Rd) is 5.16%. The capital structure is 74.75% equity and 25.25% debt.

Spectrum Brands Holdings, Inc. (SPB) — WACC 分析

WACC 构成

解读

Spectrum Brands Holdings, Inc.（SPB）WACC：7.13%

WACC计算器

Spectrum Brands Holdings, Inc.（SPB） WACC 解读

SPB 公司分析

SPB DCF 估值

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