Question 1

What is General Dynamics Corporation's WACC?

Accepted Answer

General Dynamics Corporation (GD) has a Weighted Average Cost of Capital (WACC) of 7.05%. This is calculated using a Cost of Equity of 7.32% (via CAPM with a beta of 0.57) and a pre-tax Cost of Debt of 5.02%, with an equity weight of 91.91% in the capital structure.

Question 2

Is General Dynamics Corporation's WACC high or low?

Accepted Answer

General Dynamics Corporation's WACC of 7.05% 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 General Dynamics Corporation's WACC calculated?

Accepted Answer

General Dynamics Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.32% is derived from the CAPM model using a beta of 0.57. The pre-tax Cost of Debt (Rd) is 5.02%. The capital structure is 91.91% equity and 8.09% debt.

General Dynamics Corporation (GD) — WACC 分析

WACC 构成

解读

General Dynamics Corporation（GD）WACC：7.05%

WACC计算器

General Dynamics Corporation（GD） WACC 解读

GD 公司分析

GD DCF 估值

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