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GE Aerospace (GE) — WACC Analysis

WACC Breakdown

GE Aerospace (GE) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.2%, derived from a beta of 1.07 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.6%. The capital structure is 95.5% equity and 4.5% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of GE Aerospace.

Investors can compare GE's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 1.07 reflects the stock's volatility relative to the broader market.

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VALUATION

GE WACC: 8.82% for GE Aerospace

Current inputs imply a 9.17% cost of equity and a 2.00% 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

GE Aerospace Common Stock (GE) WACC Results
Weighted Average Cost of Capital
8.82%
Cost of Equity
9.17%
Risk-Free Rate4.74%
Beta1.07
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 95.47%($361.46B)
Debt: 4.53%($17.16B)
Equity Component
8.75%
95.47% × 9.17%
Debt Component
0.07%
4.53% × 1.58%

GE Aerospace (GE) WACC in context

GE Aerospace (GE) currently screens with an estimated WACC of 8.82%. That blends a 9.17% cost of equity, a 2.00% pre-tax cost of debt, and a 95.47% 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 GE WACC implies

A 8.82% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.07 and equity accounts for 95.47% 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.

GE WACC: 8.82% — GE Aerospace Cost of Capital (August 2026) | DeepViews