Question 1

What is Watts Water Technologies, Inc. Class A's WACC?

Accepted Answer

Watts Water Technologies, Inc. Class A (WTS) has a Weighted Average Cost of Capital (WACC) of 8.83%. 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 5.41%, with an equity weight of 98.32% in the capital structure.

Question 2

Is Watts Water Technologies, Inc. Class A's WACC high or low?

Accepted Answer

Watts Water Technologies, Inc. Class A's WACC of 8.83% 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 Watts Water Technologies, Inc. Class A's WACC calculated?

Accepted Answer

Watts Water Technologies, Inc. Class A'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 5.41%. The capital structure is 98.32% equity and 1.68% debt.

Watts Water Technologies, Inc. Class A (WTS) — WACC 分析

WACC 构成

解读

Watts Water Technologies, Inc. Class A（WTS）WACC：8.83%

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Watts Water Technologies, Inc. Class A（WTS） WACC 解读

WTS 公司分析

WTS DCF 估值

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