Question 1

What is United Community Banks, Inc.'s WACC?

Accepted Answer

United Community Banks, Inc. (UCB) has a Weighted Average Cost of Capital (WACC) of 16.92%. 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 230.69%, with an equity weight of 95.17% in the capital structure.

Question 2

Is United Community Banks, Inc.'s WACC high or low?

Accepted Answer

United Community Banks, Inc.'s WACC of 16.92% is above the typical range, indicating higher perceived risk and cost of capital. 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 United Community Banks, Inc.'s WACC calculated?

Accepted Answer

United Community Banks, Inc.'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 230.69%. The capital structure is 95.17% equity and 4.83% debt.

United Community Banks, Inc. (UCB) — WACC 分析

WACC 构成

解读

United Community Banks, Inc.（UCB）WACC：16.92%

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United Community Banks, Inc.（UCB） WACC 解读

UCB 公司分析

UCB DCF 估值

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