Question 1

What is Western Alliance Bancorporation's WACC?

Accepted Answer

Western Alliance Bancorporation (WAL) has a Weighted Average Cost of Capital (WACC) of 16.55%. 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 34.49%, with an equity weight of 57.16% in the capital structure.

Question 2

Is Western Alliance Bancorporation's WACC high or low?

Accepted Answer

Western Alliance Bancorporation's WACC of 16.55% 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 Western Alliance Bancorporation's WACC calculated?

Accepted Answer

Western Alliance Bancorporation'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 34.49%. The capital structure is 57.16% equity and 42.84% debt.

Western Alliance Bancorporation (WAL) — WACC 分析

WACC 构成

解读

Western Alliance Bancorporation（WAL）WACC：16.55%

WACC计算器

Western Alliance Bancorporation（WAL） WACC 解读

WAL 公司分析

WAL DCF 估值

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