Question 1

What is Virgin Galactic Holdings, Inc.'s WACC?

Accepted Answer

Virgin Galactic Holdings, Inc. (SPCE) has a Weighted Average Cost of Capital (WACC) of 7.98%. This is calculated using a Cost of Equity of 11.56% (via CAPM with a beta of 2.01) and a pre-tax Cost of Debt of 3.56%, with an equity weight of 55.32% in the capital structure.

Question 2

Is Virgin Galactic Holdings, Inc.'s WACC high or low?

Accepted Answer

Virgin Galactic Holdings, Inc.'s WACC of 7.98% 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 Virgin Galactic Holdings, Inc.'s WACC calculated?

Accepted Answer

Virgin Galactic Holdings, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 11.56% is derived from the CAPM model using a beta of 2.01. The pre-tax Cost of Debt (Rd) is 3.56%. The capital structure is 55.32% equity and 44.68% debt.

Virgin Galactic Holdings, Inc. (SPCE) — WACC 分析

WACC 构成

解读

Virgin Galactic Holdings, Inc.（SPCE）WACC：7.98%

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Virgin Galactic Holdings, Inc.（SPCE） WACC 解读

SPCE 公司分析

SPCE DCF 估值

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