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Rivian Automotive, Inc. Class A Common Stock (RIVN) — WACC Analysis

WACC Breakdown

Rivian Automotive, Inc. Class A Common Stock (RIVN) has a weighted average cost of capital (WACC) of 10.9%. The cost of equity is 12.0%, derived from a beta of 1.92 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.0%. The capital structure is 80.9% equity and 19.1% debt.

Interpretation

A WACC of 10.9% is moderate, reflecting the market's balanced risk assessment of Rivian Automotive, Inc. Class A Common Stock.

Investors can compare RIVN's WACC of 10.9% against industry peers to gauge its relative financing costs. A beta of 1.92 reflects the stock's volatility relative to the broader market.

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VALUATION

RIVN WACC: 10.86% for Rivian Automotive, Inc. Class A Common Stock

Current inputs imply a 12.01% cost of equity and a 5.99% 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

Rivian Automotive, Inc. Class A Common Stock Common Stock (RIVN) WACC Results
Weighted Average Cost of Capital
10.86%
Cost of Equity
12.01%
Risk-Free Rate5.19%
Beta1.92
Market Risk Premium4.23%
Cost of Debt
5.99%
Pre-Tax Cost of Debt5.99%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 80.92%($18.85B)
Debt: 19.08%($4444.00M)
Equity Component
9.72%
80.92% × 12.01%
Debt Component
1.14%
19.08% × 5.99%

Rivian Automotive, Inc. Class A Common Stock (RIVN) WACC in context

Rivian Automotive, Inc. Class A Common Stock (RIVN) currently screens with an estimated WACC of 10.86%. That blends a 12.01% cost of equity, a 5.99% pre-tax cost of debt, and a 80.92% 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 RIVN WACC implies

A 10.86% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates RIVN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.92 and equity accounts for 80.92% 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.