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Flowers Foods, Inc. (FLO) — WACC Analysis

WACC Breakdown

Flowers Foods, Inc. (FLO) has a weighted average cost of capital (WACC) of 6.1%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.8%. The capital structure is 43.0% equity and 57.0% debt.

Interpretation

A WACC of 6.1% suggests that the market views Flowers Foods, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare FLO's WACC of 6.1% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

FLO WACC: 6.10% for Flowers Foods, Inc.

Current inputs imply a 9.19% cost of equity and a 4.78% 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

Flowers Foods, Inc. Common Stock (FLO) WACC Results
Weighted Average Cost of Capital
6.10%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.78%
Pre-Tax Cost of Debt4.78%
Tax Rate21.00%
Tax Shield1.00%
Capital Structure
Equity: 43.00%($1271.96M)
Debt: 57.00%($1686.25M)
Equity Component
3.95%
43.00% × 9.19%
Debt Component
2.15%
57.00% × 3.78%

Flowers Foods, Inc. (FLO) WACC in context

Flowers Foods, Inc. (FLO) currently screens with an estimated WACC of 6.10%. That blends a 9.19% cost of equity, a 4.78% pre-tax cost of debt, and a 43.00% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What FLO WACC implies

A 6.10% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates FLO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 43.00% 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.