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KeyCorp (KEY) — WACC Analysis

WACC Breakdown

KeyCorp (KEY) has a weighted average cost of capital (WACC) of 14.3%. The cost of equity is 9.5%, derived from a beta of 1.19 and a risk-free rate of 4.7%. The after-tax cost of debt is 24.5%. The capital structure is 68.1% equity and 31.9% debt.

Interpretation

A WACC of 14.3% indicates that the market perceives KeyCorp as higher-risk, requiring a greater return to compensate investors.

Investors can compare KEY's WACC of 14.3% against industry peers to gauge its relative financing costs. A beta of 1.19 reflects the stock's volatility relative to the broader market.

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VALUATION

KEY WACC: 14.29% for KeyCorp

Current inputs imply a 9.50% cost of equity and a 31.02% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[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

KeyCorp Common Stock (KEY) WACC Results
Weighted Average Cost of Capital
14.29%
Cost of Equity
9.50%
Risk-Free Rate4.73%
Beta1.19
Market Risk Premium4.23%
Cost of Debt
24.51%
Pre-Tax Cost of Debt31.02%
Tax Rate21.00%
Tax Shield6.51%
Capital Structure
Equity: 68.07%($23.38B)
Debt: 31.93%($10.97B)
Equity Component
6.46%
68.07% × 9.50%
Debt Component
7.82%
31.93% × 24.51%

KeyCorp (KEY) WACC in context

KeyCorp (KEY) currently screens with an estimated WACC of 14.29%. That blends a 9.50% cost of equity, a 31.02% pre-tax cost of debt, and a 68.07% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What KEY WACC implies

A 14.29% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates KEY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.19 and equity accounts for 68.07% 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.

KEY WACC: 14.29% — KeyCorp Cost of Capital (September 2026) | DeepViews