Question 1

What is Alphabet Inc. Class A Common Stock's WACC?

Accepted Answer

Alphabet Inc. Class A Common Stock (GOOGL) has a Weighted Average Cost of Capital (WACC) of 8.43%. This is calculated using a Cost of Equity of 8.52% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 98.76% in the capital structure.

Question 2

Is Alphabet Inc. Class A Common Stock's WACC high or low?

Accepted Answer

Alphabet Inc. Class A Common Stock's WACC of 8.43% falls within the typical 8-12% range for mid-cap growth companies. 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 Alphabet Inc. Class A Common Stock's WACC calculated?

Accepted Answer

Alphabet Inc. Class A Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.52% 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 98.76% equity and 1.24% debt.

Alphabet Inc. Class A Common Stock (GOOGL) — WACC 分析

WACC 构成

解读

Alphabet Inc. Class A Common Stock（GOOGL）WACC：8.43%

WACC计算器

Alphabet Inc. Class A Common Stock（GOOGL） WACC 解读

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