Question 1

What is Williams Companies Inc.'s WACC?

Accepted Answer

Williams Companies Inc. (WMB) has a Weighted Average Cost of Capital (WACC) of 6.64%. This is calculated using a Cost of Equity of 7.56% (via CAPM with a beta of 0.56) and a pre-tax Cost of Debt of 4.89%, with an equity weight of 75.25% in the capital structure.

Question 2

Is Williams Companies Inc.'s WACC high or low?

Accepted Answer

Williams Companies Inc.'s WACC of 6.64% 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 Williams Companies Inc.'s WACC calculated?

Accepted Answer

Williams Companies Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.56% is derived from the CAPM model using a beta of 0.56. The pre-tax Cost of Debt (Rd) is 4.89%. The capital structure is 75.25% equity and 24.75% debt.

Williams Companies Inc. (WMB) — WACC 分析

WACC 构成

解读

Williams Companies Inc.（WMB）WACC：6.64%

WACC计算器

Williams Companies Inc.（WMB） WACC 解读

WMB 公司分析

WMB DCF 估值

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