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Fastly, Inc. Class A Common Stock (FSLY) — WACC Analysis

WACC Breakdown

Fastly, Inc. Class A Common Stock (FSLY) has a weighted average cost of capital (WACC) of 11.4%. The cost of equity is 12.0%, derived from a beta of 2.01 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.0%. The capital structure is 92.4% equity and 7.6% debt.

Interpretation

A WACC of 11.4% is moderate, reflecting the market's balanced risk assessment of Fastly, Inc. Class A Common Stock.

Investors can compare FSLY's WACC of 11.4% against industry peers to gauge its relative financing costs. A beta of 2.01 reflects the stock's volatility relative to the broader market.

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VALUATION

FSLY WACC: 11.44% for Fastly, Inc. Class A Common Stock

Current inputs imply a 12.05% cost of equity and a 4.02% 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

Fastly, Inc. Class A Common Stock Common Stock (FSLY) WACC Results
Weighted Average Cost of Capital
11.44%
Cost of Equity
12.05%
Risk-Free Rate4.97%
Beta2.01
Market Risk Premium4.23%
Cost of Debt
4.02%
Pre-Tax Cost of Debt4.02%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 92.44%($3960.20M)
Debt: 7.56%($323.96M)
Equity Component
11.14%
92.44% × 12.05%
Debt Component
0.30%
7.56% × 4.02%

Fastly, Inc. Class A Common Stock (FSLY) WACC in context

Fastly, Inc. Class A Common Stock (FSLY) currently screens with an estimated WACC of 11.44%. That blends a 12.05% cost of equity, a 4.02% pre-tax cost of debt, and a 92.44% 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 FSLY WACC implies

A 11.44% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FSLY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.01 and equity accounts for 92.44% 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.