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VALUATION

AFRM WACC: 12.21% for Affirm Holdings, Inc. Class A Common Stock

Current inputs imply a 15.48% cost of equity and a 4.64% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
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

Affirm Holdings, Inc. Class A Common Stock Common Stock (AFRM) WACC Results
Weighted Average Cost of Capital
12.21%
Cost of Equity
15.48%
Risk-Free Rate5.19%
Beta3.15
Market Risk Premium4.23%
Cost of Debt
3.66%
Pre-Tax Cost of Debt4.64%
Tax Rate21.00%
Tax Shield0.97%
Capital Structure
Equity: 72.34%($25.62B)
Debt: 27.66%($9794.06M)
Equity Component
11.20%
72.34% × 15.48%
Debt Component
1.01%
27.66% × 3.66%

Affirm Holdings, Inc. Class A Common Stock (AFRM) WACC in context

Affirm Holdings, Inc. Class A Common Stock (AFRM) currently screens with an estimated WACC of 12.21%. That blends a 15.48% cost of equity, a 4.64% pre-tax cost of debt, and a 72.34% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What AFRM WACC implies

A 12.21% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates AFRM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 3.15 and equity accounts for 72.34% 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.