Question 1

What is ADVANCED DRAINAGE SYSTEMS, INC.'s WACC?

Accepted Answer

ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a Weighted Average Cost of Capital (WACC) of 8.68%. This is calculated using a Cost of Equity of 9.48% (via CAPM with a beta of 1.33) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 89.91% in the capital structure.

Question 2

Is ADVANCED DRAINAGE SYSTEMS, INC.'s WACC high or low?

Accepted Answer

ADVANCED DRAINAGE SYSTEMS, INC.'s WACC of 8.68% falls within the typical 8-12% range for mid-cap growth companies. 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 ADVANCED DRAINAGE SYSTEMS, INC.'s WACC calculated?

Accepted Answer

ADVANCED DRAINAGE SYSTEMS, INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.48% is derived from the CAPM model using a beta of 1.33. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 89.91% equity and 10.09% debt.

ADVANCED DRAINAGE SYSTEMS, INC. (WMS) — WACC 分析

WACC 构成

解读

ADVANCED DRAINAGE SYSTEMS, INC.（WMS）WACC：8.68%

WACC计算器

ADVANCED DRAINAGE SYSTEMS, INC.（WMS） WACC 解读

WMS 公司分析

WMS DCF 估值

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