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Sirius XM Holdings, Inc (SIRI) — WACC Analysis

WACC Breakdown

Sirius XM Holdings, Inc (SIRI) has a weighted average cost of capital (WACC) of 6.2%. The cost of equity is 8.6%, derived from a beta of 0.79 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.8%. The capital structure is 51.1% equity and 48.9% debt.

Interpretation

A WACC of 6.2% suggests that the market views Sirius XM Holdings, Inc as relatively low-risk, with a lower cost of financing.

Investors can compare SIRI's WACC of 6.2% against industry peers to gauge its relative financing costs. A beta of 0.79 reflects the stock's volatility relative to the broader market.

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VALUATION

SIRI WACC: 6.24% for Sirius XM Holdings, Inc

Current inputs imply a 8.61% cost of equity and a 4.76% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Sirius XM Holdings, Inc Common Stock (SIRI) WACC Results
Weighted Average Cost of Capital
6.24%
Cost of Equity
8.61%
Risk-Free Rate4.97%
Beta0.79
Market Risk Premium4.23%
Cost of Debt
3.76%
Pre-Tax Cost of Debt4.76%
Tax Rate21.00%
Tax Shield1.00%
Capital Structure
Equity: 51.13%($9899.65M)
Debt: 48.87%($9463.00M)
Equity Component
4.40%
51.13% × 8.61%
Debt Component
1.84%
48.87% × 3.76%

Sirius XM Holdings, Inc (SIRI) WACC in context

Sirius XM Holdings, Inc (SIRI) currently screens with an estimated WACC of 6.24%. That blends a 8.61% cost of equity, a 4.76% pre-tax cost of debt, and a 51.13% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What SIRI WACC implies

A 6.24% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SIRI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.79 and equity accounts for 51.13% 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.

SIRI WACC: 6.24% — Sirius XM Holdings, Inc Cost of Capital (September 2026) | DeepViews