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Applovin Corporation Class A Common Stock (APP) — WACC Analysis

WACC Breakdown

Applovin Corporation Class A Common Stock (APP) has a weighted average cost of capital (WACC) of 12.5%. The cost of equity is 12.7%, derived from a beta of 2.18 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.6%. The capital structure is 96.4% equity and 3.6% debt.

Interpretation

A WACC of 12.5% indicates that the market perceives Applovin Corporation Class A Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare APP's WACC of 12.5% against industry peers to gauge its relative financing costs. A beta of 2.18 reflects the stock's volatility relative to the broader market.

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VALUATION

APP WACC: 12.45% for Applovin Corporation Class A Common Stock

Current inputs imply a 12.75% cost of equity and a 5.83% 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

Applovin Corporation Class A Common Stock Common Stock (APP) WACC Results
Weighted Average Cost of Capital
12.45%
Cost of Equity
12.75%
Risk-Free Rate5.19%
Beta2.18
Market Risk Premium4.23%
Cost of Debt
4.61%
Pre-Tax Cost of Debt5.83%
Tax Rate21.00%
Tax Shield1.22%
Capital Structure
Equity: 96.38%($93.46B)
Debt: 3.62%($3515.07M)
Equity Component
12.29%
96.38% × 12.75%
Debt Component
0.17%
3.62% × 4.61%

Applovin Corporation Class A Common Stock (APP) WACC in context

Applovin Corporation Class A Common Stock (APP) currently screens with an estimated WACC of 12.45%. That blends a 12.75% cost of equity, a 5.83% pre-tax cost of debt, and a 96.38% 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 APP WACC implies

A 12.45% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates APP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.18 and equity accounts for 96.38% 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.