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Performance Food Group Company (PFGC) — WACC Analysis

WACC Breakdown

Performance Food Group Company (PFGC) has a weighted average cost of capital (WACC) of 8.5%. 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 6.5%. The capital structure is 74.5% equity and 25.5% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Performance Food Group Company.

Investors can compare PFGC's WACC of 8.5% 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

PFGC WACC: 8.51% for Performance Food Group Company

Current inputs imply a 9.19% cost of equity and a 8.26% 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

Performance Food Group Company Common Stock (PFGC) WACC Results
Weighted Average Cost of Capital
8.51%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
6.53%
Pre-Tax Cost of Debt8.26%
Tax Rate21.00%
Tax Shield1.74%
Capital Structure
Equity: 74.51%($14.63B)
Debt: 25.49%($5006.80M)
Equity Component
6.85%
74.51% × 9.19%
Debt Component
1.66%
25.49% × 6.53%

Performance Food Group Company (PFGC) WACC in context

Performance Food Group Company (PFGC) currently screens with an estimated WACC of 8.51%. That blends a 9.19% cost of equity, a 8.26% pre-tax cost of debt, and a 74.51% 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 PFGC WACC implies

A 8.51% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PFGC

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 74.51% 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.