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Kingsoft Cloud Holdings Limited American Depositary Shares (KC) — WACC Analysis

WACC Breakdown

Kingsoft Cloud Holdings Limited American Depositary Shares (KC) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 7.6%. The capital structure is 76.4% equity and 23.6% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Kingsoft Cloud Holdings Limited American Depositary Shares.

Investors can compare KC's WACC of 8.8% 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

KC WACC: 8.82% for Kingsoft Cloud Holdings Limited American Depositary Shares

Current inputs imply a 9.19% cost of equity and a 7.63% 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

Kingsoft Cloud Holdings Limited American Depositary Shares Common Stock (KC) WACC Results
Weighted Average Cost of Capital
8.82%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
7.63%
Pre-Tax Cost of Debt7.63%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 76.38%($2942.80M)
Debt: 23.62%($910.13M)
Equity Component
7.02%
76.38% × 9.19%
Debt Component
1.80%
23.62% × 7.63%

Kingsoft Cloud Holdings Limited American Depositary Shares (KC) WACC in context

Kingsoft Cloud Holdings Limited American Depositary Shares (KC) currently screens with an estimated WACC of 8.82%. That blends a 9.19% cost of equity, a 7.63% pre-tax cost of debt, and a 76.38% 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 KC WACC implies

A 8.82% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates KC

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 76.38% 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.