Question 1

What is Tootsie Roll Industries, Inc.'s WACC?

Accepted Answer

Tootsie Roll Industries, Inc. (TR) has a Weighted Average Cost of Capital (WACC) of 6.54%. This is calculated using a Cost of Equity of 6.54% (via CAPM with a beta of 0.31) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Tootsie Roll Industries, Inc.'s WACC high or low?

Accepted Answer

Tootsie Roll Industries, Inc.'s WACC of 6.54% 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 Tootsie Roll Industries, Inc.'s WACC calculated?

Accepted Answer

Tootsie Roll Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.54% is derived from the CAPM model using a beta of 0.31. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Tootsie Roll Industries, Inc. (TR) — WACC 分析

WACC 构成

解读

Tootsie Roll Industries, Inc.（TR）WACC：6.54%

WACC计算器

Tootsie Roll Industries, Inc.（TR） WACC 解读

TR 公司分析

TR DCF 估值

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