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Hilton Grand Vacations Inc. Common Stock (HGV) — WACC Analysis

WACC Breakdown

Hilton Grand Vacations Inc. Common Stock (HGV) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 10.3%, derived from a beta of 1.29 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.8%. The capital structure is 35.5% equity and 64.5% debt.

Interpretation

A WACC of 6.8% suggests that the market views Hilton Grand Vacations Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare HGV's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 1.29 reflects the stock's volatility relative to the broader market.

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VALUATION

HGV WACC: 6.76% for Hilton Grand Vacations Inc. Common Stock

Current inputs imply a 10.27% cost of equity and a 6.11% 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

Hilton Grand Vacations Inc. Common Stock Common Stock (HGV) WACC Results
Weighted Average Cost of Capital
6.76%
Cost of Equity
10.27%
Risk-Free Rate5.22%
Beta1.29
Market Risk Premium4.23%
Cost of Debt
4.83%
Pre-Tax Cost of Debt6.11%
Tax Rate21.00%
Tax Shield1.28%
Capital Structure
Equity: 35.51%($2684.59M)
Debt: 64.49%($4876.00M)
Equity Component
3.65%
35.51% × 10.27%
Debt Component
3.11%
64.49% × 4.83%

Hilton Grand Vacations Inc. Common Stock (HGV) WACC in context

Hilton Grand Vacations Inc. Common Stock (HGV) currently screens with an estimated WACC of 6.76%. That blends a 10.27% cost of equity, a 6.11% pre-tax cost of debt, and a 35.51% 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 HGV WACC implies

A 6.76% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HGV

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.29 and equity accounts for 35.51% 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.

HGV WACC: 6.76% — Hilton Grand Vacations Inc. Common Stock Cost of Capital (October 2026) | DeepViews