Question 1

What is Genuine Parts Company's WACC?

Accepted Answer

Genuine Parts Company (GPC) has a Weighted Average Cost of Capital (WACC) of 6.88%. This is calculated using a Cost of Equity of 7.95% (via CAPM with a beta of 0.70) and a pre-tax Cost of Debt of 3.67%, with an equity weight of 78.85% in the capital structure.

Question 2

Is Genuine Parts Company's WACC high or low?

Accepted Answer

Genuine Parts Company's WACC of 6.88% 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 Genuine Parts Company's WACC calculated?

Accepted Answer

Genuine Parts Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.95% is derived from the CAPM model using a beta of 0.70. The pre-tax Cost of Debt (Rd) is 3.67%. The capital structure is 78.85% equity and 21.15% debt.

Genuine Parts Company (GPC) — WACC 分析

WACC 构成

解读

Genuine Parts Company（GPC）WACC：6.88%

WACC计算器

Genuine Parts Company（GPC） WACC 解读

GPC 公司分析

GPC DCF 估值

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