Question 1

What is Titan International, Inc.(Delaware)'s WACC?

Accepted Answer

Titan International, Inc.(Delaware) (TWI) has a Weighted Average Cost of Capital (WACC) of 6.77%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.44%, with an equity weight of 48.81% in the capital structure.

Question 2

Is Titan International, Inc.(Delaware)'s WACC high or low?

Accepted Answer

Titan International, Inc.(Delaware)'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 Titan International, Inc.(Delaware)'s WACC calculated?

Accepted Answer

Titan International, Inc.(Delaware)'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.44%. The capital structure is 48.81% equity and 51.19% debt.

Titan International, Inc.(Delaware) (TWI) — WACC 分析

WACC 构成

解读

Titan International, Inc.(Delaware)（TWI）WACC：6.77%

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Titan International, Inc.(Delaware)（TWI） WACC 解读

TWI 公司分析

TWI DCF 估值

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