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Pilgrims Pride Corporation (PPC) — WACC Analysis

WACC Breakdown

Pilgrims Pride Corporation (PPC) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 7.8%, derived from a beta of 0.42 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.6%. The capital structure is 70.5% equity and 29.5% debt.

Interpretation

A WACC of 6.9% suggests that the market views Pilgrims Pride Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare PPC's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 0.42 reflects the stock's volatility relative to the broader market.

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VALUATION

PPC WACC: 6.85% for Pilgrims Pride Corporation

Current inputs imply a 7.81% cost of equity and a 5.76% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[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

Pilgrims Pride Corporation Common Stock (PPC) WACC Results
Weighted Average Cost of Capital
6.85%
Cost of Equity
7.81%
Risk-Free Rate5.22%
Beta0.42
Market Risk Premium4.23%
Cost of Debt
4.55%
Pre-Tax Cost of Debt5.76%
Tax Rate21.00%
Tax Shield1.21%
Capital Structure
Equity: 70.45%($6821.81M)
Debt: 29.55%($2861.36M)
Equity Component
5.51%
70.45% × 7.81%
Debt Component
1.35%
29.55% × 4.55%

Pilgrims Pride Corporation (PPC) WACC in context

Pilgrims Pride Corporation (PPC) currently screens with an estimated WACC of 6.85%. That blends a 7.81% cost of equity, a 5.76% pre-tax cost of debt, and a 70.45% 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 PPC WACC implies

A 6.85% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PPC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.42 and equity accounts for 70.45% 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.