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Amazon.Com Inc (AMZN) — WACC Analysis

WACC Breakdown

Amazon.Com Inc (AMZN) has a weighted average cost of capital (WACC) of 10.0%. The cost of equity is 10.3%, derived from a beta of 1.48 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.0%. The capital structure is 95.6% equity and 4.4% debt.

Interpretation

A WACC of 10.0% is moderate, reflecting the market's balanced risk assessment of Amazon.Com Inc.

Investors can compare AMZN's WACC of 10.0% against industry peers to gauge its relative financing costs. A beta of 1.48 reflects the stock's volatility relative to the broader market.

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VALUATION

AMZN WACC: 9.96% for Amazon.Com Inc

Current inputs imply a 10.32% cost of equity and a 2.58% 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
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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

Amazon.Com Inc Common Stock (AMZN) WACC Results
Weighted Average Cost of Capital
9.96%
Cost of Equity
10.32%
Risk-Free Rate4.74%
Beta1.48
Market Risk Premium4.23%
Cost of Debt
2.04%
Pre-Tax Cost of Debt2.58%
Tax Rate21.00%
Tax Shield0.54%
Capital Structure
Equity: 95.57%($2789.66B)
Debt: 4.43%($129.22B)
Equity Component
9.87%
95.57% × 10.32%
Debt Component
0.09%
4.43% × 2.04%

Amazon.Com Inc (AMZN) WACC in context

Amazon.Com Inc (AMZN) currently screens with an estimated WACC of 9.96%. That blends a 10.32% cost of equity, a 2.58% pre-tax cost of debt, and a 95.57% 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 AMZN WACC implies

A 9.96% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates AMZN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.48 and equity accounts for 95.57% 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.