Question 1

What is Asbury Automotive Group, Inc.'s WACC?

Accepted Answer

Asbury Automotive Group, Inc. (ABG) has a Weighted Average Cost of Capital (WACC) of 5.33%. This is calculated using a Cost of Equity of 9.13% (via CAPM with a beta of 1.16) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 49.64% in the capital structure.

Question 2

Is Asbury Automotive Group, Inc.'s WACC high or low?

Accepted Answer

Asbury Automotive Group, Inc.'s WACC of 5.33% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Asbury Automotive Group, Inc.'s WACC calculated?

Accepted Answer

Asbury Automotive Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.13% is derived from the CAPM model using a beta of 1.16. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 49.64% equity and 50.36% debt.

Asbury Automotive Group, Inc. (ABG) — WACC 分析

WACC 构成

解读

Asbury Automotive Group, Inc.（ABG）WACC：5.33%

WACC计算器

Asbury Automotive Group, Inc.（ABG） WACC 解读

ABG 公司分析

ABG DCF 估值

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