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APA Corporation Common Stock (APA) — WACC Analysis

WACC Breakdown

APA Corporation Common Stock (APA) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 9.0%, derived from a beta of 1.03 and a risk-free rate of 4.7%. The after-tax cost of debt is 6.0%. The capital structure is 79.9% equity and 20.1% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of APA Corporation Common Stock.

Investors can compare APA's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 1.03 reflects the stock's volatility relative to the broader market.

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VALUATION

APA WACC: 8.44% for APA Corporation Common Stock

Current inputs imply a 9.04% cost of equity and a 7.61% 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

APA Corporation Common Stock Common Stock (APA) WACC Results
Weighted Average Cost of Capital
8.44%
Cost of Equity
9.04%
Risk-Free Rate4.73%
Beta1.03
Market Risk Premium4.23%
Cost of Debt
6.02%
Pre-Tax Cost of Debt7.61%
Tax Rate21.00%
Tax Shield1.60%
Capital Structure
Equity: 79.93%($14.90B)
Debt: 20.07%($3743.00M)
Equity Component
7.23%
79.93% × 9.04%
Debt Component
1.21%
20.07% × 6.02%

APA Corporation Common Stock (APA) WACC in context

APA Corporation Common Stock (APA) currently screens with an estimated WACC of 8.44%. That blends a 9.04% cost of equity, a 7.61% pre-tax cost of debt, and a 79.93% 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 APA WACC implies

A 8.44% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates APA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.03 and equity accounts for 79.93% 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.