Question 1

What is Weyerhaeuser Company's WACC?

Accepted Answer

Weyerhaeuser Company (WY) has a Weighted Average Cost of Capital (WACC) of 7.10%. This is calculated using a Cost of Equity of 8.11% (via CAPM with a beta of 0.85) and a pre-tax Cost of Debt of 4.90%, with an equity weight of 76.23% in the capital structure.

Question 2

Is Weyerhaeuser Company's WACC high or low?

Accepted Answer

Weyerhaeuser Company's WACC of 7.10% 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 Weyerhaeuser Company's WACC calculated?

Accepted Answer

Weyerhaeuser Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.11% is derived from the CAPM model using a beta of 0.85. The pre-tax Cost of Debt (Rd) is 4.90%. The capital structure is 76.23% equity and 23.77% debt.

Weyerhaeuser Company (WY) — WACC 分析

WACC 构成

解读

Weyerhaeuser Company（WY）WACC：7.10%

WACC计算器

Weyerhaeuser Company（WY） WACC 解读

WY 公司分析

WY DCF 估值

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