Question 1

What is Verizon Communications's WACC?

Accepted Answer

Verizon Communications (VZ) has a Weighted Average Cost of Capital (WACC) of 5.04%. This is calculated using a Cost of Equity of 6.38% (via CAPM with a beta of 0.24) and a pre-tax Cost of Debt of 4.24%, with an equity weight of 55.88% in the capital structure.

Question 2

Is Verizon Communications's WACC high or low?

Accepted Answer

Verizon Communications's WACC of 5.04% 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 Verizon Communications's WACC calculated?

Accepted Answer

Verizon Communications's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.38% is derived from the CAPM model using a beta of 0.24. The pre-tax Cost of Debt (Rd) is 4.24%. The capital structure is 55.88% equity and 44.12% debt.

Verizon Communications (VZ) — WACC 分析

WACC 构成

解读

Verizon Communications（VZ）WACC：5.04%

WACC计算器

Verizon Communications（VZ） WACC 解读

VZ 公司分析

VZ DCF 估值

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