Question 1

What is Green Brick Partners, Inc's WACC?

Accepted Answer

Green Brick Partners, Inc (GRBK) has a Weighted Average Cost of Capital (WACC) of 7.89%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 89.48% in the capital structure.

Question 2

Is Green Brick Partners, Inc's WACC high or low?

Accepted Answer

Green Brick Partners, Inc's WACC of 7.89% 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 Green Brick Partners, Inc's WACC calculated?

Accepted Answer

Green Brick Partners, Inc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% 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 89.48% equity and 10.52% debt.

Green Brick Partners, Inc (GRBK) — WACC 分析

WACC 构成

解读

Green Brick Partners, Inc（GRBK）WACC：7.89%

WACC计算器

Green Brick Partners, Inc（GRBK） WACC 解读

GRBK 公司分析

GRBK DCF 估值

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