Question 1

What is Gen Digital Inc. Common Stock's WACC?

Accepted Answer

Gen Digital Inc. Common Stock (GEN) has a Weighted Average Cost of Capital (WACC) of 7.43%. This is calculated using a Cost of Equity of 8.39% (via CAPM with a beta of 0.89) and a pre-tax Cost of Debt of 6.94%, with an equity weight of 67.11% in the capital structure.

Question 2

Is Gen Digital Inc. Common Stock's WACC high or low?

Accepted Answer

Gen Digital Inc. Common Stock's WACC of 7.43% 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 Gen Digital Inc. Common Stock's WACC calculated?

Accepted Answer

Gen Digital Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.39% is derived from the CAPM model using a beta of 0.89. The pre-tax Cost of Debt (Rd) is 6.94%. The capital structure is 67.11% equity and 32.89% debt.

Gen Digital Inc. Common Stock (GEN) — WACC 分析

WACC 构成

解读

Gen Digital Inc. Common Stock（GEN）WACC：7.43%

WACC计算器

Gen Digital Inc. Common Stock（GEN） WACC 解读

GEN 公司分析

GEN DCF 估值

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