Question 1

What is Garrett Motion Inc. Common Stock's WACC?

Accepted Answer

Garrett Motion Inc. Common Stock (GTX) has a Weighted Average Cost of Capital (WACC) of 8.28%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 7.48%, with an equity weight of 80.62% in the capital structure.

Question 2

Is Garrett Motion Inc. Common Stock's WACC high or low?

Accepted Answer

Garrett Motion Inc. Common Stock's WACC of 8.28% 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 Garrett Motion Inc. Common Stock's WACC calculated?

Accepted Answer

Garrett Motion 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 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 7.48%. The capital structure is 80.62% equity and 19.38% debt.

Garrett Motion Inc. Common Stock (GTX) — WACC 分析

WACC 构成

解读

Garrett Motion Inc. Common Stock（GTX）WACC：8.28%

WACC计算器

Garrett Motion Inc. Common Stock（GTX） WACC 解读

GTX 公司分析

GTX DCF 估值

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