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VALUATION

CACC WACC: 13.41% for Credit Acceptance Corp

Current inputs imply a 10.08% cost of equity and a 40.07% 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
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
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

Credit Acceptance Corp Common Stock (CACC) WACC Results
Weighted Average Cost of Capital
13.41%
Cost of Equity
10.08%
Risk-Free Rate4.98%
Beta1.31
Market Risk Premium4.23%
Cost of Debt
31.65%
Pre-Tax Cost of Debt40.07%
Tax Rate21.00%
Tax Shield8.41%
Capital Structure
Equity: 84.57%($5976.93M)
Debt: 15.43%($1090.20M)
Equity Component
8.53%
84.57% × 10.08%
Debt Component
4.88%
15.43% × 31.65%

Credit Acceptance Corp (CACC) WACC in context

Credit Acceptance Corp (CACC) currently screens with an estimated WACC of 13.41%. That blends a 10.08% cost of equity, a 40.07% pre-tax cost of debt, and a 84.57% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What CACC WACC implies

A 13.41% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates CACC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.31 and equity accounts for 84.57% 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.