Question 1

What is Turning Point Brands, Inc.'s WACC?

Accepted Answer

Turning Point Brands, Inc. (TPB) has a Weighted Average Cost of Capital (WACC) of 7.62%. This is calculated using a Cost of Equity of 7.69% (via CAPM with a beta of 0.59) and a pre-tax Cost of Debt of 9.14%, with an equity weight of 84.05% in the capital structure.

Question 2

Is Turning Point Brands, Inc.'s WACC high or low?

Accepted Answer

Turning Point Brands, Inc.'s WACC of 7.62% 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 Turning Point Brands, Inc.'s WACC calculated?

Accepted Answer

Turning Point Brands, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.69% is derived from the CAPM model using a beta of 0.59. The pre-tax Cost of Debt (Rd) is 9.14%. The capital structure is 84.05% equity and 15.95% debt.

Turning Point Brands, Inc. (TPB) — WACC 分析

WACC 构成

解读

Turning Point Brands, Inc.（TPB）WACC：7.62%

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Turning Point Brands, Inc.（TPB） WACC 解读

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TPB DCF 估值

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