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Baidu, Inc. (BIDU) — WACC Analysis

WACC Breakdown

Baidu, Inc. (BIDU) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.4%. The capital structure is 82.5% equity and 17.5% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of Baidu, Inc..

Investors can compare BIDU's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

BIDU WACC: 8.16% for Baidu, Inc.

Current inputs imply a 8.96% cost of equity and a 5.56% 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

Baidu, Inc. Common Stock (BIDU) WACC Results
Weighted Average Cost of Capital
8.16%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
4.39%
Pre-Tax Cost of Debt5.56%
Tax Rate21.00%
Tax Shield1.17%
Capital Structure
Equity: 82.50%($32.94B)
Debt: 17.50%($6989.86M)
Equity Component
7.39%
82.50% × 8.96%
Debt Component
0.77%
17.50% × 4.39%

Baidu, Inc. (BIDU) WACC in context

Baidu, Inc. (BIDU) currently screens with an estimated WACC of 8.16%. That blends a 8.96% cost of equity, a 5.56% pre-tax cost of debt, and a 82.50% 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 BIDU WACC implies

A 8.16% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates BIDU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 82.50% 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.