Question 1

What is Simpson Manufacturing Co., Inc.'s WACC?

Accepted Answer

Simpson Manufacturing Co., Inc. (SSD) has a Weighted Average Cost of Capital (WACC) of 8.47%. This is calculated using a Cost of Equity of 8.71% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.89%, with an equity weight of 96.24% in the capital structure.

Question 2

Is Simpson Manufacturing Co., Inc.'s WACC high or low?

Accepted Answer

Simpson Manufacturing Co., Inc.'s WACC of 8.47% falls within the typical 8-12% range for mid-cap growth companies. 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 Simpson Manufacturing Co., Inc.'s WACC calculated?

Accepted Answer

Simpson Manufacturing Co., Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.71% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.89%. The capital structure is 96.24% equity and 3.76% debt.

Simpson Manufacturing Co., Inc. (SSD) — WACC 分析

WACC 构成

解读

Simpson Manufacturing Co., Inc.（SSD）WACC：8.47%

WACC计算器

Simpson Manufacturing Co., Inc.（SSD） WACC 解读

SSD 公司分析

SSD DCF 估值

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