Skip to content

Robo.ai Inc. Class B Ordinary Shares (AIIO) — WACC Analysis

WACC Breakdown

Robo.ai Inc. Class B Ordinary Shares (AIIO) has a weighted average cost of capital (WACC) of 16.8%. The cost of equity is 14.3%, derived from a beta of 2.91 and a risk-free rate of 4.7%. The after-tax cost of debt is 7969.1%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 16.8% indicates that the market perceives Robo.ai Inc. Class B Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare AIIO's WACC of 16.8% against industry peers to gauge its relative financing costs. A beta of 2.91 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

AIIO WACC: 16.83% for Robo.ai Inc. Class B Ordinary Shares

Current inputs imply a 14.29% cost of equity and a 7969.11% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[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
Quick search:
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

Robo.ai Inc. Class B Ordinary Shares Common Stock (AIIO) WACC Results
Weighted Average Cost of Capital
16.83%
Cost of Equity
14.29%
Risk-Free Rate4.67%
Beta2.91
Market Risk Premium4.23%
Cost of Debt
7969.11%
Pre-Tax Cost of Debt7969.11%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.97%($383.78M)
Debt: 0.03%($0.12M)
Equity Component
14.28%
99.97% × 14.29%
Debt Component
2.55%
0.03% × 7969.11%

Robo.ai Inc. Class B Ordinary Shares (AIIO) WACC in context

Robo.ai Inc. Class B Ordinary Shares (AIIO) currently screens with an estimated WACC of 16.83%. That blends a 14.29% cost of equity, a 7969.11% pre-tax cost of debt, and a 99.97% 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 AIIO WACC implies

A 16.83% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates AIIO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.91 and equity accounts for 99.97% 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.