Question 1

What is Walmart Inc. Common Stock's WACC?

Accepted Answer

Walmart Inc. Common Stock (WMT) has a Weighted Average Cost of Capital (WACC) of 6.90%. This is calculated using a Cost of Equity of 6.97% (via CAPM with a beta of 0.45) and a pre-tax Cost of Debt of 6.17%, with an equity weight of 96.58% in the capital structure.

Question 2

Is Walmart Inc. Common Stock's WACC high or low?

Accepted Answer

Walmart Inc. Common Stock's WACC of 6.90% 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 Walmart Inc. Common Stock's WACC calculated?

Accepted Answer

Walmart Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.97% is derived from the CAPM model using a beta of 0.45. The pre-tax Cost of Debt (Rd) is 6.17%. The capital structure is 96.58% equity and 3.42% debt.

Walmart Inc. Common Stock (WMT) — WACC 分析

WACC 构成

解读

Walmart Inc. Common Stock（WMT）WACC：6.90%

WACC计算器

Walmart Inc. Common Stock（WMT） WACC 解读

WMT 公司分析

WMT DCF 估值

继续做同行对比