Question 1

What is Westlake Corporation's WACC?

Accepted Answer

Westlake Corporation (WLK) has a Weighted Average Cost of Capital (WACC) of 6.80%. This is calculated using a Cost of Equity of 8.91% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.38%, with an equity weight of 61.86% in the capital structure.

Question 2

Is Westlake Corporation's WACC high or low?

Accepted Answer

Westlake Corporation's WACC of 6.80% 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 Westlake Corporation's WACC calculated?

Accepted Answer

Westlake Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.91% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.38%. The capital structure is 61.86% equity and 38.14% debt.

Westlake Corporation (WLK) — WACC 分析

WACC 构成

解读

Westlake Corporation（WLK）WACC：6.80%

WACC计算器

Westlake Corporation（WLK） WACC 解读

WLK 公司分析

WLK DCF 估值

继续做同行对比