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Airbnb, Inc. Class A Common Stock (ABNB) — WACC Analysis

WACC Breakdown

Airbnb, Inc. Class A Common Stock (ABNB) has a weighted average cost of capital (WACC) of 10.7%. The cost of equity is 10.9%, derived from a beta of 1.52 and a risk-free rate of 5.2%. The after-tax cost of debt is 1.6%. The capital structure is 97.6% equity and 2.4% debt.

Interpretation

A WACC of 10.7% is moderate, reflecting the market's balanced risk assessment of Airbnb, Inc. Class A Common Stock.

Investors can compare ABNB's WACC of 10.7% against industry peers to gauge its relative financing costs. A beta of 1.52 reflects the stock's volatility relative to the broader market.

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VALUATION

ABNB WACC: 10.67% for Airbnb, Inc. Class A Common Stock

Current inputs imply a 10.89% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Airbnb, Inc. Class A Common Stock Common Stock (ABNB) WACC Results
Weighted Average Cost of Capital
10.67%
Cost of Equity
10.89%
Risk-Free Rate5.19%
Beta1.52
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 97.65%($102.75B)
Debt: 2.35%($2476.00M)
Equity Component
10.63%
97.65% × 10.89%
Debt Component
0.04%
2.35% × 1.58%

Airbnb, Inc. Class A Common Stock (ABNB) WACC in context

Airbnb, Inc. Class A Common Stock (ABNB) currently screens with an estimated WACC of 10.67%. That blends a 10.89% cost of equity, a 2.00% pre-tax cost of debt, and a 97.65% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ABNB WACC implies

A 10.67% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ABNB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.52 and equity accounts for 97.65% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.