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The GEO Group, Inc. (GEO) — WACC Analysis

WACC Breakdown

The GEO Group, Inc. (GEO) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 9.3%, derived from a beta of 0.93 and a risk-free rate of 5.2%. The after-tax cost of debt is 8.0%. The capital structure is 73.1% equity and 26.9% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of The GEO Group, Inc..

Investors can compare GEO's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 0.93 reflects the stock's volatility relative to the broader market.

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VALUATION

GEO WACC: 8.91% for The GEO Group, Inc.

Current inputs imply a 9.25% cost of equity and a 10.12% 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

The GEO Group, Inc. Common Stock (GEO) WACC Results
Weighted Average Cost of Capital
8.91%
Cost of Equity
9.25%
Risk-Free Rate5.22%
Beta0.93
Market Risk Premium4.23%
Cost of Debt
8.00%
Pre-Tax Cost of Debt10.12%
Tax Rate21.00%
Tax Shield2.13%
Capital Structure
Equity: 73.05%($4097.32M)
Debt: 26.95%($1511.53M)
Equity Component
6.76%
73.05% × 9.25%
Debt Component
2.16%
26.95% × 8.00%

The GEO Group, Inc. (GEO) WACC in context

The GEO Group, Inc. (GEO) currently screens with an estimated WACC of 8.91%. That blends a 9.25% cost of equity, a 10.12% pre-tax cost of debt, and a 73.05% 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 GEO WACC implies

A 8.91% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GEO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.93 and equity accounts for 73.05% 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.