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JB Hunt Transport Services Inc (JBHT) — WACC Analysis

WACC Breakdown

JB Hunt Transport Services Inc (JBHT) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.0%, derived from a beta of 0.94 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.8%. The capital structure is 95.8% equity and 4.2% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of JB Hunt Transport Services Inc.

Investors can compare JBHT's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 0.94 reflects the stock's volatility relative to the broader market.

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VALUATION

JBHT WACC: 8.84% for JB Hunt Transport Services Inc

Current inputs imply a 9.02% 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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[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

JB Hunt Transport Services Inc Common Stock (JBHT) WACC Results
Weighted Average Cost of Capital
8.84%
Cost of Equity
9.02%
Risk-Free Rate4.96%
Beta0.94
Market Risk Premium4.23%
Cost of Debt
4.83%
Pre-Tax Cost of Debt6.11%
Tax Rate21.00%
Tax Shield1.28%
Capital Structure
Equity: 95.75%($25.83B)
Debt: 4.25%($1145.34M)
Equity Component
8.64%
95.75% × 9.02%
Debt Component
0.21%
4.25% × 4.83%

JB Hunt Transport Services Inc (JBHT) WACC in context

JB Hunt Transport Services Inc (JBHT) currently screens with an estimated WACC of 8.84%. That blends a 9.02% cost of equity, a 6.11% pre-tax cost of debt, and a 95.75% 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 JBHT WACC implies

A 8.84% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates JBHT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.94 and equity accounts for 95.75% 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.