Question 1

What is Waste Management, Inc.'s WACC?

Accepted Answer

Waste Management, Inc. (WM) has a Weighted Average Cost of Capital (WACC) of 5.87%. This is calculated using a Cost of Equity of 6.88% (via CAPM with a beta of 0.32) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 80.95% in the capital structure.

Question 2

Is Waste Management, Inc.'s WACC high or low?

Accepted Answer

Waste Management, Inc.'s WACC of 5.87% 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 Waste Management, Inc.'s WACC calculated?

Accepted Answer

Waste Management, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.88% is derived from the CAPM model using a beta of 0.32. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 80.95% equity and 19.05% debt.

Waste Management, Inc. (WM) — WACC 分析

WACC 构成

解读

Waste Management, Inc.（WM）WACC：5.87%

WACC计算器

Waste Management, Inc.（WM） WACC 解读

WM 公司分析

WM DCF 估值

继续做同行对比