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ARKO Corp. Common Stock (ARKO) — WACC Analysis

WACC Breakdown

ARKO Corp. Common Stock (ARKO) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 9.1%, derived from a beta of 0.89 and a risk-free rate of 5.2%. The after-tax cost of debt is 10.2%. The capital structure is 40.9% equity and 59.1% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of ARKO Corp. Common Stock.

Investors can compare ARKO's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 0.89 reflects the stock's volatility relative to the broader market.

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VALUATION

ARKO WACC: 9.75% for ARKO Corp. Common Stock

Current inputs imply a 9.14% cost of equity and a 12.89% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

ARKO Corp. Common Stock Common Stock (ARKO) WACC Results
Weighted Average Cost of Capital
9.75%
Cost of Equity
9.14%
Risk-Free Rate5.22%
Beta0.89
Market Risk Premium4.23%
Cost of Debt
10.18%
Pre-Tax Cost of Debt12.89%
Tax Rate21.00%
Tax Shield2.71%
Capital Structure
Equity: 40.89%($466.69M)
Debt: 59.11%($674.51M)
Equity Component
3.74%
40.89% × 9.14%
Debt Component
6.02%
59.11% × 10.18%

ARKO Corp. Common Stock (ARKO) WACC in context

ARKO Corp. Common Stock (ARKO) currently screens with an estimated WACC of 9.75%. That blends a 9.14% cost of equity, a 12.89% pre-tax cost of debt, and a 40.89% 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 ARKO WACC implies

A 9.75% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ARKO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.89 and equity accounts for 40.89% 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.