Question 1

What is Dollar General Corp.'s WACC?

Accepted Answer

Dollar General Corp. (DG) has a Weighted Average Cost of Capital (WACC) of 7.36%. This is calculated using a Cost of Equity of 8.55% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 82.99% in the capital structure.

Question 2

Is Dollar General Corp.'s WACC high or low?

Accepted Answer

Dollar General Corp.'s WACC of 7.36% 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 Dollar General Corp.'s WACC calculated?

Accepted Answer

Dollar General Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.55% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 82.99% equity and 17.01% debt.

Dollar General Corp. (DG) — WACC 分析

WACC 构成

解读

Dollar General Corp.（DG）WACC：7.36%

WACC计算器

Dollar General Corp.（DG） WACC 解读

DG 公司分析

DG DCF 估值

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