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GENERAC HOLDINGS INC (GNRC) — WACC Analysis

WACC Breakdown

GENERAC HOLDINGS INC (GNRC) has a weighted average cost of capital (WACC) of 10.6%. The cost of equity is 11.3%, derived from a beta of 1.68 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.2%. The capital structure is 90.1% equity and 9.9% debt.

Interpretation

A WACC of 10.6% is moderate, reflecting the market's balanced risk assessment of GENERAC HOLDINGS INC.

Investors can compare GNRC's WACC of 10.6% against industry peers to gauge its relative financing costs. A beta of 1.68 reflects the stock's volatility relative to the broader market.

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VALUATION

GNRC WACC: 10.63% for GENERAC HOLDINGS INC

Current inputs imply a 11.34% cost of equity and a 5.27% 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

GENERAC HOLDINGS INC Common Stock (GNRC) WACC Results
Weighted Average Cost of Capital
10.63%
Cost of Equity
11.34%
Risk-Free Rate5.19%
Beta1.68
Market Risk Premium4.23%
Cost of Debt
4.16%
Pre-Tax Cost of Debt5.27%
Tax Rate21.00%
Tax Shield1.11%
Capital Structure
Equity: 90.15%($11.72B)
Debt: 9.85%($1281.01M)
Equity Component
10.22%
90.15% × 11.34%
Debt Component
0.41%
9.85% × 4.16%

GENERAC HOLDINGS INC (GNRC) WACC in context

GENERAC HOLDINGS INC (GNRC) currently screens with an estimated WACC of 10.63%. That blends a 11.34% cost of equity, a 5.27% pre-tax cost of debt, and a 90.15% 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 GNRC WACC implies

A 10.63% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GNRC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.68 and equity accounts for 90.15% 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.