Question 1

What is Central Garden and Pet Co's WACC?

Accepted Answer

Central Garden and Pet Co (CENT) has a Weighted Average Cost of Capital (WACC) of 6.31%. This is calculated using a Cost of Equity of 7.60% (via CAPM with a beta of 0.67) and a pre-tax Cost of Debt of 4.84%, with an equity weight of 65.85% in the capital structure.

Question 2

Is Central Garden and Pet Co's WACC high or low?

Accepted Answer

Central Garden and Pet Co's WACC of 6.31% 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 Central Garden and Pet Co's WACC calculated?

Accepted Answer

Central Garden and Pet Co's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.60% is derived from the CAPM model using a beta of 0.67. The pre-tax Cost of Debt (Rd) is 4.84%. The capital structure is 65.85% equity and 34.15% debt.

Central Garden and Pet Co (CENT) — WACC 分析

WACC 构成

解读

Central Garden and Pet Co（CENT）WACC：6.31%

WACC计算器

Central Garden and Pet Co（CENT） WACC 解读

CENT 公司分析

CENT DCF 估值

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