Question 1

What is Suburban Propane Partners L P's WACC?

Accepted Answer

Suburban Propane Partners L P (SPH) has a Weighted Average Cost of Capital (WACC) of 5.47%. This is calculated using a Cost of Equity of 5.92% (via CAPM with a beta of 0.40) and a pre-tax Cost of Debt of 6.29%, with an equity weight of 52.79% in the capital structure.

Question 2

Is Suburban Propane Partners L P's WACC high or low?

Accepted Answer

Suburban Propane Partners L P's WACC of 5.47% 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 Suburban Propane Partners L P's WACC calculated?

Accepted Answer

Suburban Propane Partners L P's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 5.92% is derived from the CAPM model using a beta of 0.40. The pre-tax Cost of Debt (Rd) is 6.29%. The capital structure is 52.79% equity and 47.21% debt.

Suburban Propane Partners L P (SPH) — WACC 分析

WACC 构成

解读

Suburban Propane Partners L P（SPH）WACC：5.47%

WACC计算器

Suburban Propane Partners L P（SPH） WACC 解读

SPH 公司分析

SPH DCF 估值

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