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Affirm Holdings, Inc. Class A Common Stock (AFRM) — WACC Analysis

WACC Breakdown

Affirm Holdings, Inc. Class A Common Stock (AFRM) has a weighted average cost of capital (WACC) of 11.9%. The cost of equity is 14.9%, derived from a beta of 3.12 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.7%. The capital structure is 72.8% equity and 27.2% debt.

Interpretation

A WACC of 11.9% is moderate, reflecting the market's balanced risk assessment of Affirm Holdings, Inc. Class A Common Stock.

Investors can compare AFRM's WACC of 11.9% against industry peers to gauge its relative financing costs. A beta of 3.12 reflects the stock's volatility relative to the broader market.

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VALUATION

AFRM WACC: 11.87% for Affirm Holdings, Inc. Class A Common Stock

Current inputs imply a 14.94% 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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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

Affirm Holdings, Inc. Class A Common Stock Common Stock (AFRM) WACC Results
Weighted Average Cost of Capital
11.87%
Cost of Equity
14.94%
Risk-Free Rate4.73%
Beta3.12
Market Risk Premium4.23%
Cost of Debt
3.66%
Pre-Tax Cost of Debt4.64%
Tax Rate21.00%
Tax Shield0.97%
Capital Structure
Equity: 72.82%($26.24B)
Debt: 27.18%($9794.06M)
Equity Component
10.88%
72.82% × 14.94%
Debt Component
1.00%
27.18% × 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 11.87%. That blends a 14.94% cost of equity, a 4.64% pre-tax cost of debt, and a 72.82% 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 AFRM WACC implies

A 11.87% discount rate falls into a common range for established public companies and is a practical DCF starting point.

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 3.12 and equity accounts for 72.82% 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.