General Motors Co (GM) WACC Analysis

As of May 24, 2025, General Motors Co (GM) carries a Weighted Average Cost of Capital (WACC) of 5.8%. WACC reflects the blended rate General Motors Co must pay to both equity and debt holders.

Within that, the cost of equity is 7.4%, the cost of debt is 4.1%, and the effective tax rate is 19.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.76 – 1.07
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.76

What It Means for Investors

With a selected WACC of 5.8%, General Motors Co must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.