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Packaging Corp of America (PKG) — WACC Analysis

WACC Breakdown

Packaging Corp of America (PKG) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.2%, derived from a beta of 0.74 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.4%. The capital structure is 84.0% equity and 16.0% debt.

Interpretation

A WACC of 7.3% suggests that the market views Packaging Corp of America as relatively low-risk, with a lower cost of financing.

Investors can compare PKG's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

PKG WACC: 7.29% for Packaging Corp of America

Current inputs imply a 8.23% cost of equity and a 3.00% 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

Packaging Corp of America Common Stock (PKG) WACC Results
Weighted Average Cost of Capital
7.29%
Cost of Equity
8.23%
Risk-Free Rate4.73%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
2.37%
Pre-Tax Cost of Debt3.00%
Tax Rate21.00%
Tax Shield0.63%
Capital Structure
Equity: 84.00%($20.84B)
Debt: 16.00%($3968.90M)
Equity Component
6.91%
84.00% × 8.23%
Debt Component
0.38%
16.00% × 2.37%

Packaging Corp of America (PKG) WACC in context

Packaging Corp of America (PKG) currently screens with an estimated WACC of 7.29%. That blends a 8.23% cost of equity, a 3.00% pre-tax cost of debt, and a 84.00% 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 PKG WACC implies

A 7.29% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PKG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 84.00% 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.

PKG WACC: 7.29% — Packaging Corp of America Cost of Capital (September 2026) | DeepViews