Question 1

What is Willis Lease Finance Corp's WACC?

Accepted Answer

Willis Lease Finance Corp (WLFC) has a Weighted Average Cost of Capital (WACC) of 6.47%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.88%, with an equity weight of 43.31% in the capital structure.

Question 2

Is Willis Lease Finance Corp's WACC high or low?

Accepted Answer

Willis Lease Finance Corp's WACC of 6.47% 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 Willis Lease Finance Corp's WACC calculated?

Accepted Answer

Willis Lease Finance Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.88%. The capital structure is 43.31% equity and 56.69% debt.

Willis Lease Finance Corp (WLFC) — WACC 分析

WACC 构成

解读

Willis Lease Finance Corp（WLFC）WACC：6.47%

WACC计算器

Willis Lease Finance Corp（WLFC） WACC 解读

WLFC 公司分析

WLFC DCF 估值

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