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Holley Inc. (HLLY) — WACC Analysis

WACC Breakdown

Holley Inc. (HLLY) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 9.6%, derived from a beta of 1.07 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.1%. The capital structure is 36.1% equity and 63.9% debt.

Interpretation

A WACC of 7.4% suggests that the market views Holley Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare HLLY's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 1.07 reflects the stock's volatility relative to the broader market.

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VALUATION

HLLY WACC: 7.40% for Holley Inc.

Current inputs imply a 9.65% cost of equity and a 7.76% 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

Holley Inc. Common Stock (HLLY) WACC Results
Weighted Average Cost of Capital
7.40%
Cost of Equity
9.65%
Risk-Free Rate5.22%
Beta1.07
Market Risk Premium4.23%
Cost of Debt
6.13%
Pre-Tax Cost of Debt7.76%
Tax Rate21.00%
Tax Shield1.63%
Capital Structure
Equity: 36.15%($298.24M)
Debt: 63.85%($526.81M)
Equity Component
3.49%
36.15% × 9.65%
Debt Component
3.91%
63.85% × 6.13%

Holley Inc. (HLLY) WACC in context

Holley Inc. (HLLY) currently screens with an estimated WACC of 7.40%. That blends a 9.65% cost of equity, a 7.76% pre-tax cost of debt, and a 36.15% 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 HLLY WACC implies

A 7.40% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HLLY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.07 and equity accounts for 36.15% 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.