AAP
Advance Auto Parts Inc
Price:  
39.76 
USD
Volume:  
4,031,569.00
United States | Specialty Retail
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AAP WACC - Weighted Average Cost of Capital

The WACC of Advance Auto Parts Inc (AAP) is 7.8%.

The Cost of Equity of Advance Auto Parts Inc (AAP) is 7.80%.
The Cost of Debt of Advance Auto Parts Inc (AAP) is 10.05%.

Range Selected
Cost of equity 6.40% - 9.20% 7.80%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.50% - 15.60% 10.05%
WACC 5.2% - 10.3% 7.8%
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 0.55 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.20%
Tax rate 23.20% 23.60%
Debt/Equity ratio 0.66 0.66
Cost of debt 4.50% 15.60%
After-tax WACC 5.2% 10.3%
Selected WACC 7.8%