PRTS
Carparts.Com Inc
Price:  
0.84 
USD
Volume:  
341,003.00
United States | Internet & Direct Marketing Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Carparts.Com WACC - Weighted Average Cost of Capital

The WACC of Carparts.Com Inc (PRTS) is 9.6%.

The Cost of Equity of Carparts.Com Inc (PRTS) is 10.20%.
The Cost of Debt of Carparts.Com Inc (PRTS) is 7.35%.

Range Selected
Cost of equity 8.70% - 11.70% 10.20%
Tax rate 3.10% - 12.40% 7.75%
Cost of debt 7.00% - 7.70% 7.35%
WACC 8.3% - 10.8% 9.6%
WACC

Carparts.Com WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.05 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.70%
Tax rate 3.10% 12.40%
Debt/Equity ratio 0.24 0.24
Cost of debt 7.00% 7.70%
After-tax WACC 8.3% 10.8%
Selected WACC 9.6%

Carparts.Com's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for Carparts.Com:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.05) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.