Question 1

What is O'Reilly Automotive, Inc.'s WACC?

Accepted Answer

O'Reilly Automotive, Inc. (ORLY) has a Weighted Average Cost of Capital (WACC) of 6.81%. This is calculated using a Cost of Equity of 7.14% (via CAPM with a beta of 0.41) and a pre-tax Cost of Debt of 3.88%, with an equity weight of 92.02% in the capital structure.

Question 2

Is O'Reilly Automotive, Inc.'s WACC high or low?

Accepted Answer

O'Reilly Automotive, Inc.'s WACC of 6.81% 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 O'Reilly Automotive, Inc.'s WACC calculated?

Accepted Answer

O'Reilly Automotive, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.14% is derived from the CAPM model using a beta of 0.41. The pre-tax Cost of Debt (Rd) is 3.88%. The capital structure is 92.02% equity and 7.98% debt.

O'Reilly Automotive, Inc. (ORLY) — WACC 分析

WACC 构成

解读

O'Reilly Automotive, Inc.（ORLY）WACC：6.81%

WACC计算器

O'Reilly Automotive, Inc.（ORLY） WACC 解读

ORLY 公司分析

ORLY DCF 估值

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