Copart Inc (CPRT) WACC Analysis

As of June 14, 2025, Copart Inc (CPRT) carries a Weighted Average Cost of Capital (WACC) of 12.5%. WACC reflects the blended rate Copart Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.8%, the cost of debt is 4.5%, and the effective tax rate is 17.8%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.64 – 0.83
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 12.5%, Copart Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.