Question 1

What is General Mills, Inc.'s WACC?

Accepted Answer

General Mills, Inc. (GIS) has a Weighted Average Cost of Capital (WACC) of 4.71%. This is calculated using a Cost of Equity of 6.05% (via CAPM with a beta of 0.12) and a pre-tax Cost of Debt of 3.69%, with an equity weight of 57.16% in the capital structure.

Question 2

Is General Mills, Inc.'s WACC high or low?

Accepted Answer

General Mills, Inc.'s WACC of 4.71% 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 Mills, Inc.'s WACC calculated?

Accepted Answer

General Mills, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.05% is derived from the CAPM model using a beta of 0.12. The pre-tax Cost of Debt (Rd) is 3.69%. The capital structure is 57.16% equity and 42.84% debt.

General Mills, Inc. (GIS) — WACC 分析

WACC 构成

解读

General Mills, Inc.（GIS）WACC：4.71%

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General Mills, Inc.（GIS） WACC 解读

GIS 公司分析

GIS DCF 估值

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