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Opendoor Technologies Inc Common Stock (OPEN) — WACC Analysis

WACC Breakdown

Opendoor Technologies Inc Common Stock (OPEN) has a weighted average cost of capital (WACC) of 14.7%. The cost of equity is 14.0%, derived from a beta of 2.71 and a risk-free rate of 5.0%. The after-tax cost of debt is 16.5%. The capital structure is 72.8% equity and 27.2% debt.

Interpretation

A WACC of 14.7% indicates that the market perceives Opendoor Technologies Inc Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare OPEN's WACC of 14.7% against industry peers to gauge its relative financing costs. A beta of 2.71 reflects the stock's volatility relative to the broader market.

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VALUATION

OPEN WACC: 14.70% for Opendoor Technologies Inc Common Stock

Current inputs imply a 14.03% cost of equity and a 16.50% 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

Opendoor Technologies Inc Common Stock Common Stock (OPEN) WACC Results
Weighted Average Cost of Capital
14.70%
Cost of Equity
14.03%
Risk-Free Rate4.98%
Beta2.71
Market Risk Premium4.23%
Cost of Debt
16.50%
Pre-Tax Cost of Debt16.50%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 72.75%($1845.07M)
Debt: 27.25%($691.00M)
Equity Component
10.21%
72.75% × 14.03%
Debt Component
4.50%
27.25% × 16.50%

Opendoor Technologies Inc Common Stock (OPEN) WACC in context

Opendoor Technologies Inc Common Stock (OPEN) currently screens with an estimated WACC of 14.70%. That blends a 14.03% cost of equity, a 16.50% pre-tax cost of debt, and a 72.75% 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 OPEN WACC implies

A 14.70% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates OPEN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.71 and equity accounts for 72.75% 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.