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GXO Logistics, Inc. (GXO) — WACC Analysis

WACC Breakdown

GXO Logistics, Inc. (GXO) has a weighted average cost of capital (WACC) of 7.0%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.3%. The capital structure is 62.7% equity and 37.3% debt.

Interpretation

A WACC of 7.0% suggests that the market views GXO Logistics, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare GXO's WACC of 7.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

GXO WACC: 6.98% for GXO Logistics, Inc.

Current inputs imply a 9.19% cost of equity and a 4.12% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[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

GXO Logistics, Inc. Common Stock (GXO) WACC Results
Weighted Average Cost of Capital
6.98%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.26%
Pre-Tax Cost of Debt4.12%
Tax Rate21.00%
Tax Shield0.87%
Capital Structure
Equity: 62.69%($5382.15M)
Debt: 37.31%($3203.00M)
Equity Component
5.76%
62.69% × 9.19%
Debt Component
1.21%
37.31% × 3.26%

GXO Logistics, Inc. (GXO) WACC in context

GXO Logistics, Inc. (GXO) currently screens with an estimated WACC of 6.98%. That blends a 9.19% cost of equity, a 4.12% pre-tax cost of debt, and a 62.69% 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 GXO WACC implies

A 6.98% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates GXO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 62.69% 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.