The WACC of Group 1 Automotive Inc (GPI) is 7.4%.
Range | Selected | |
Cost of equity | 8.70% - 11.90% | 10.30% |
Tax rate | 22.80% - 23.40% | 23.10% |
Cost of debt | 4.00% - 5.10% | 4.55% |
WACC | 6.4% - 8.5% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.06 | 1.25 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.70% | 11.90% |
Tax rate | 22.80% | 23.40% |
Debt/Equity ratio | 0.72 | 0.72 |
Cost of debt | 4.00% | 5.10% |
After-tax WACC | 6.4% | 8.5% |
Selected WACC | 7.4% | |