Question 1

What is Hertz Global Holdings, Inc Common Stock's WACC?

Accepted Answer

Hertz Global Holdings, Inc Common Stock (HTZ) has a Weighted Average Cost of Capital (WACC) of 5.97%. This is calculated using a Cost of Equity of 9.90% (via CAPM with a beta of 1.35) and a pre-tax Cost of Debt of 5.86%, with an equity weight of 2.68% in the capital structure.

Question 2

Is Hertz Global Holdings, Inc Common Stock's WACC high or low?

Accepted Answer

Hertz Global Holdings, Inc Common Stock's WACC of 5.97% 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 Hertz Global Holdings, Inc Common Stock's WACC calculated?

Accepted Answer

Hertz Global Holdings, 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 9.90% is derived from the CAPM model using a beta of 1.35. The pre-tax Cost of Debt (Rd) is 5.86%. The capital structure is 2.68% equity and 97.32% debt.

Hertz Global Holdings, Inc Common Stock (HTZ) — WACC 分析

WACC 构成

解读

Hertz Global Holdings, Inc Common Stock（HTZ）WACC：5.97%

WACC计算器

Hertz Global Holdings, Inc Common Stock（HTZ） WACC 解读

HTZ 公司分析

HTZ DCF 估值

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