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Domo, Inc. Class B Common Stock (DOMO) — WACC Analysis

WACC Breakdown

Domo, Inc. Class B Common Stock (DOMO) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 11.8%, derived from a beta of 1.93 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.0%. The capital structure is 58.9% equity and 41.1% debt.

Interpretation

A WACC of 7.8% suggests that the market views Domo, Inc. Class B Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare DOMO's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 1.93 reflects the stock's volatility relative to the broader market.

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VALUATION

DOMO WACC: 7.79% for Domo, Inc. Class B Common Stock

Current inputs imply a 11.82% cost of equity and a 2.00% 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

Domo, Inc. Class B Common Stock Common Stock (DOMO) WACC Results
Weighted Average Cost of Capital
7.79%
Cost of Equity
11.82%
Risk-Free Rate4.97%
Beta1.93
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 58.91%($184.38M)
Debt: 41.09%($128.60M)
Equity Component
6.96%
58.91% × 11.82%
Debt Component
0.82%
41.09% × 2.00%

Domo, Inc. Class B Common Stock (DOMO) WACC in context

Domo, Inc. Class B Common Stock (DOMO) currently screens with an estimated WACC of 7.79%. That blends a 11.82% cost of equity, a 2.00% pre-tax cost of debt, and a 58.91% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What DOMO WACC implies

A 7.79% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DOMO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.93 and equity accounts for 58.91% 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.