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Genuine Parts Company (GPC) — WACC Analysis

WACC Breakdown

Genuine Parts Company (GPC) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 8.1%, derived from a beta of 0.69 and a risk-free rate of 4.8%. The after-tax cost of debt is 1.6%. The capital structure is 79.7% equity and 20.3% debt.

Interpretation

A WACC of 6.8% suggests that the market views Genuine Parts Company as relatively low-risk, with a lower cost of financing.

Investors can compare GPC's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 0.69 reflects the stock's volatility relative to the broader market.

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VALUATION

GPC WACC: 6.78% for Genuine Parts Company

Current inputs imply a 8.11% 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

Genuine Parts Company Common Stock (GPC) WACC Results
Weighted Average Cost of Capital
6.78%
Cost of Equity
8.11%
Risk-Free Rate4.75%
Beta0.69
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 79.72%($18.59B)
Debt: 20.28%($4729.12M)
Equity Component
6.46%
79.72% × 8.11%
Debt Component
0.32%
20.28% × 1.58%

Genuine Parts Company (GPC) WACC in context

Genuine Parts Company (GPC) currently screens with an estimated WACC of 6.78%. That blends a 8.11% cost of equity, a 2.00% pre-tax cost of debt, and a 79.72% 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 GPC WACC implies

A 6.78% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates GPC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.69 and equity accounts for 79.72% 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.