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US Foods Holding Corp. (USFD) — WACC Analysis

WACC Breakdown

US Foods Holding Corp. (USFD) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 9.0%, derived from a beta of 0.93 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.6%. The capital structure is 79.7% equity and 20.3% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of US Foods Holding Corp..

Investors can compare USFD's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.93 reflects the stock's volatility relative to the broader market.

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VALUATION

USFD WACC: 8.10% for US Foods Holding Corp.

Current inputs imply a 8.99% cost of equity and a 5.84% 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

US Foods Holding Corp. Common Stock (USFD) WACC Results
Weighted Average Cost of Capital
8.10%
Cost of Equity
8.99%
Risk-Free Rate4.96%
Beta0.93
Market Risk Premium4.23%
Cost of Debt
4.62%
Pre-Tax Cost of Debt5.84%
Tax Rate21.00%
Tax Shield1.23%
Capital Structure
Equity: 79.66%($20.51B)
Debt: 20.34%($5237.00M)
Equity Component
7.16%
79.66% × 8.99%
Debt Component
0.94%
20.34% × 4.62%

US Foods Holding Corp. (USFD) WACC in context

US Foods Holding Corp. (USFD) currently screens with an estimated WACC of 8.10%. That blends a 8.99% cost of equity, a 5.84% pre-tax cost of debt, and a 79.66% 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 USFD WACC implies

A 8.10% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates USFD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.93 and equity accounts for 79.66% 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.