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eBay Inc (EBAY) — WACC Analysis

WACC Breakdown

eBay Inc (EBAY) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 8.6%, derived from a beta of 0.89 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.9%. The capital structure is 87.5% equity and 12.5% debt.

Interpretation

A WACC of 7.9% suggests that the market views eBay Inc as relatively low-risk, with a lower cost of financing.

Investors can compare EBAY's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.89 reflects the stock's volatility relative to the broader market.

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VALUATION

EBAY WACC: 7.93% for eBay Inc

Current inputs imply a 8.65% cost of equity and a 3.70% 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

eBay Inc Common Stock (EBAY) WACC Results
Weighted Average Cost of Capital
7.93%
Cost of Equity
8.65%
Risk-Free Rate4.73%
Beta0.89
Market Risk Premium4.23%
Cost of Debt
2.92%
Pre-Tax Cost of Debt3.70%
Tax Rate21.00%
Tax Shield0.78%
Capital Structure
Equity: 87.47%($47.00B)
Debt: 12.53%($6735.00M)
Equity Component
7.57%
87.47% × 8.65%
Debt Component
0.37%
12.53% × 2.92%

eBay Inc (EBAY) WACC in context

eBay Inc (EBAY) currently screens with an estimated WACC of 7.93%. That blends a 8.65% cost of equity, a 3.70% pre-tax cost of debt, and a 87.47% 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 EBAY WACC implies

A 7.93% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EBAY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.89 and equity accounts for 87.47% 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.