Question 1

What is Genesis Energy, L.P.'s WACC?

Accepted Answer

Genesis Energy, L.P. (GEL) has a Weighted Average Cost of Capital (WACC) of 7.32%. This is calculated using a Cost of Equity of 8.68% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 8.27%, with an equity weight of 36.69% in the capital structure.

Question 2

Is Genesis Energy, L.P.'s WACC high or low?

Accepted Answer

Genesis Energy, L.P.'s WACC of 7.32% 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 Genesis Energy, L.P.'s WACC calculated?

Accepted Answer

Genesis Energy, L.P.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 8.27%. The capital structure is 36.69% equity and 63.31% debt.

Genesis Energy, L.P. (GEL) — WACC 分析

WACC 构成

解读

Genesis Energy, L.P.（GEL）WACC：7.32%

WACC计算器

Genesis Energy, L.P.（GEL） WACC 解读

GEL 公司分析

GEL DCF 估值

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