Question 1

What is The E.W. Scripps Company's WACC?

Accepted Answer

The E.W. Scripps Company (SSP) has a Weighted Average Cost of Capital (WACC) of 6.77%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 8.16%, with an equity weight of 14.53% in the capital structure.

Question 2

Is The E.W. Scripps Company's WACC high or low?

Accepted Answer

The E.W. Scripps Company's WACC of 6.77% 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 The E.W. Scripps Company's WACC calculated?

Accepted Answer

The E.W. Scripps Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 8.16%. The capital structure is 14.53% equity and 85.47% debt.

The E.W. Scripps Company (SSP) — WACC 分析

WACC 构成

解读

The E.W. Scripps Company（SSP）WACC：6.77%

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The E.W. Scripps Company（SSP） WACC 解读

SSP 公司分析

SSP DCF 估值

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