AAP
Advance Auto Parts Inc
Price:  
46.20 
USD
Volume:  
1,786,011.00
United States | Specialty Retail
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AAP WACC - Weighted Average Cost of Capital

The WACC of Advance Auto Parts Inc (AAP) is 6.7%.

The Cost of Equity of Advance Auto Parts Inc (AAP) is 8.10%.
The Cost of Debt of Advance Auto Parts Inc (AAP) is 5.75%.

Range Selected
Cost of equity 6.90% - 9.30% 8.10%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.50% - 7.00% 5.75%
WACC 5.5% - 7.8% 6.7%
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 0.66 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.30%
Tax rate 23.20% 23.60%
Debt/Equity ratio 0.65 0.65
Cost of debt 4.50% 7.00%
After-tax WACC 5.5% 7.8%
Selected WACC 6.7%