AAP
Advance Auto Parts Inc
Price:  
69.57 
USD
Volume:  
1,244,950.00
United States | Specialty Retail
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AAP WACC - Weighted Average Cost of Capital

The WACC of Advance Auto Parts Inc (AAP) is 7.0%.

The Cost of Equity of Advance Auto Parts Inc (AAP) is 8.00%.
The Cost of Debt of Advance Auto Parts Inc (AAP) is 6.35%.

Range Selected
Cost of equity 6.80% - 9.20% 8.00%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.50% - 8.20% 6.35%
WACC 5.8% - 8.3% 7.0%
WACC

AAP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.63 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.20%
Tax rate 23.20% 23.60%
Debt/Equity ratio 0.43 0.43
Cost of debt 4.50% 8.20%
After-tax WACC 5.8% 8.3%
Selected WACC 7.0%