Question 1

What is U-Haul Holding Company's WACC?

Accepted Answer

U-Haul Holding Company (UHAL) has a Weighted Average Cost of Capital (WACC) of 6.31%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.47%, with an equity weight of 56.14% in the capital structure.

Question 2

Is U-Haul Holding Company's WACC high or low?

Accepted Answer

U-Haul Holding Company's WACC of 6.31% 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 U-Haul Holding Company's WACC calculated?

Accepted Answer

U-Haul Holding Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.47%. The capital structure is 56.14% equity and 43.86% debt.

U-Haul Holding Company (UHAL) — WACC 分析

WACC 构成

解读

U-Haul Holding Company（UHAL）WACC：6.31%

WACC计算器

U-Haul Holding Company（UHAL） WACC 解读

UHAL 公司分析

UHAL DCF 估值

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