Question 1

What is The Western Union Company's WACC?

Accepted Answer

The Western Union Company (WU) has a Weighted Average Cost of Capital (WACC) of 5.54%. This is calculated using a Cost of Equity of 7.11% (via CAPM with a beta of 0.68) and a pre-tax Cost of Debt of 4.97%, with an equity weight of 50.83% in the capital structure.

Question 2

Is The Western Union Company's WACC high or low?

Accepted Answer

The Western Union Company's WACC of 5.54% 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 The Western Union Company's WACC calculated?

Accepted Answer

The Western Union Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.11% is derived from the CAPM model using a beta of 0.68. The pre-tax Cost of Debt (Rd) is 4.97%. The capital structure is 50.83% equity and 49.17% debt.

The Western Union Company (WU) — WACC 分析

WACC 构成

解读

The Western Union Company（WU）WACC：5.54%

WACC计算器

The Western Union Company（WU） WACC 解读

WU 公司分析

WU DCF 估值

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