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Newegg Commerce, Inc. Common Shares (NEGG) — WACC Analysis

WACC Breakdown

Newegg Commerce, Inc. Common Shares (NEGG) has a weighted average cost of capital (WACC) of 11.1%. The cost of equity is 11.0%, derived from a beta of 1.74 and a risk-free rate of 4.7%. The after-tax cost of debt is 16.1%. The capital structure is 98.2% equity and 1.8% debt.

Interpretation

A WACC of 11.1% is moderate, reflecting the market's balanced risk assessment of Newegg Commerce, Inc. Common Shares.

Investors can compare NEGG's WACC of 11.1% against industry peers to gauge its relative financing costs. A beta of 1.74 reflects the stock's volatility relative to the broader market.

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VALUATION

NEGG WACC: 11.08% for Newegg Commerce, Inc. Common Shares

Current inputs imply a 10.99% cost of equity and a 16.08% 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

Newegg Commerce, Inc. Common Shares Common Stock (NEGG) WACC Results
Weighted Average Cost of Capital
11.08%
Cost of Equity
10.99%
Risk-Free Rate4.67%
Beta1.74
Market Risk Premium4.23%
Cost of Debt
16.08%
Pre-Tax Cost of Debt16.08%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 98.24%($350.27M)
Debt: 1.76%($6.28M)
Equity Component
10.79%
98.24% × 10.99%
Debt Component
0.28%
1.76% × 16.08%

Newegg Commerce, Inc. Common Shares (NEGG) WACC in context

Newegg Commerce, Inc. Common Shares (NEGG) currently screens with an estimated WACC of 11.08%. That blends a 10.99% cost of equity, a 16.08% pre-tax cost of debt, and a 98.24% 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 NEGG WACC implies

A 11.08% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NEGG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.74 and equity accounts for 98.24% 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.