SHOP WACC: 12.41% for Shopify Inc. Class A subordinate voting shares
Current inputs imply a 12.41% cost of equity and a 5.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.
WACC Calculator
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Shopify Inc. Class A subordinate voting shares (SHOP) WACC in context
Shopify Inc. Class A subordinate voting shares (SHOP) currently screens with an estimated WACC of 12.41%. That blends a 12.41% cost of equity, a 5.00% pre-tax cost of debt, and a 100.00% 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.
A 12.41% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.
This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.28 and equity accounts for 100.00% of capital.
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.