Question 1

What is TransDigm Group Incorporated's WACC?

Accepted Answer

TransDigm Group Incorporated (TDG) has a Weighted Average Cost of Capital (WACC) of 7.40%. This is calculated using a Cost of Equity of 8.72% (via CAPM with a beta of 0.97) and a pre-tax Cost of Debt of 5.70%, with an equity weight of 68.85% in the capital structure.

Question 2

Is TransDigm Group Incorporated's WACC high or low?

Accepted Answer

TransDigm Group Incorporated's WACC of 7.40% 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 TransDigm Group Incorporated's WACC calculated?

Accepted Answer

TransDigm Group Incorporated's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.72% is derived from the CAPM model using a beta of 0.97. The pre-tax Cost of Debt (Rd) is 5.70%. The capital structure is 68.85% equity and 31.15% debt.

TransDigm Group Incorporated (TDG) — WACC 分析

WACC 构成

解读

TransDigm Group Incorporated（TDG）WACC：7.40%

WACC计算器

TransDigm Group Incorporated（TDG） WACC 解读

TDG 公司分析

TDG DCF 估值

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