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AutoNation, Inc. (AN) — WACC Analysis

WACC Breakdown

AutoNation, Inc. (AN) has a weighted average cost of capital (WACC) of 10.1%. The cost of equity is 8.8%, derived from a beta of 0.96 and a risk-free rate of 4.7%. The after-tax cost of debt is 23.6%. The capital structure is 91.2% equity and 8.8% debt.

Interpretation

A WACC of 10.1% is moderate, reflecting the market's balanced risk assessment of AutoNation, Inc..

Investors can compare AN's WACC of 10.1% against industry peers to gauge its relative financing costs. A beta of 0.96 reflects the stock's volatility relative to the broader market.

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VALUATION

AN WACC: 10.14% for AutoNation, Inc.

Current inputs imply a 8.85% cost of equity and a 29.83% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

AutoNation, Inc. Common Stock (AN) WACC Results
Weighted Average Cost of Capital
10.14%
Cost of Equity
8.85%
Risk-Free Rate4.73%
Beta0.96
Market Risk Premium4.23%
Cost of Debt
23.56%
Pre-Tax Cost of Debt29.83%
Tax Rate21.00%
Tax Shield6.26%
Capital Structure
Equity: 91.24%($6615.14M)
Debt: 8.76%($635.00M)
Equity Component
8.07%
91.24% × 8.85%
Debt Component
2.06%
8.76% × 23.56%

AutoNation, Inc. (AN) WACC in context

AutoNation, Inc. (AN) currently screens with an estimated WACC of 10.14%. That blends a 8.85% cost of equity, a 29.83% pre-tax cost of debt, and a 91.24% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What AN WACC implies

A 10.14% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates AN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.96 and equity accounts for 91.24% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.