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VALUATION

SCHW WACC: 9.42% for The Charles Schwab Corporation

Current inputs imply a 9.11% cost of equity and a 14.76% 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
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
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

The Charles Schwab Corporation Common Stock (SCHW) WACC Results
Weighted Average Cost of Capital
9.42%
Cost of Equity
9.11%
Risk-Free Rate5.19%
Beta0.89
Market Risk Premium4.23%
Cost of Debt
11.66%
Pre-Tax Cost of Debt14.76%
Tax Rate21.00%
Tax Shield3.10%
Capital Structure
Equity: 87.78%($162.83B)
Debt: 12.22%($22.67B)
Equity Component
8.00%
87.78% × 9.11%
Debt Component
1.42%
12.22% × 11.66%

The Charles Schwab Corporation (SCHW) WACC in context

The Charles Schwab Corporation (SCHW) currently screens with an estimated WACC of 9.42%. That blends a 9.11% cost of equity, a 14.76% pre-tax cost of debt, and a 87.78% 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 SCHW WACC implies

A 9.42% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SCHW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.89 and equity accounts for 87.78% 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.