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W.W. Grainger, Inc. (GWW) — WACC Analysis

WACC Breakdown

W.W. Grainger, Inc. (GWW) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.2%, derived from a beta of 0.74 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.7%. The capital structure is 96.2% equity and 3.8% debt.

Interpretation

A WACC of 8.0% is moderate, reflecting the market's balanced risk assessment of W.W. Grainger, Inc..

Investors can compare GWW's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

GWW WACC: 8.02% for W.W. Grainger, Inc.

Current inputs imply a 8.23% cost of equity and a 3.36% 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

W.W. Grainger, Inc. Common Stock (GWW) WACC Results
Weighted Average Cost of Capital
8.02%
Cost of Equity
8.23%
Risk-Free Rate4.73%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
2.66%
Pre-Tax Cost of Debt3.36%
Tax Rate21.00%
Tax Shield0.71%
Capital Structure
Equity: 96.24%($61.68B)
Debt: 3.76%($2408.00M)
Equity Component
7.92%
96.24% × 8.23%
Debt Component
0.10%
3.76% × 2.66%

W.W. Grainger, Inc. (GWW) WACC in context

W.W. Grainger, Inc. (GWW) currently screens with an estimated WACC of 8.02%. That blends a 8.23% cost of equity, a 3.36% pre-tax cost of debt, and a 96.24% 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 GWW WACC implies

A 8.02% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GWW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 96.24% 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.