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SoFi Technologies, Inc. Common Stock (SOFI) — WACC Analysis

WACC Breakdown

SoFi Technologies, Inc. Common Stock (SOFI) has a weighted average cost of capital (WACC) of 11.6%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 30.4%. The capital structure is 87.6% equity and 12.4% debt.

Interpretation

A WACC of 11.6% is moderate, reflecting the market's balanced risk assessment of SoFi Technologies, Inc. Common Stock.

Investors can compare SOFI's WACC of 11.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

SOFI WACC: 11.63% for SoFi Technologies, Inc. Common Stock

Current inputs imply a 8.96% cost of equity and a 38.54% 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

SoFi Technologies, Inc. Common Stock Common Stock (SOFI) WACC Results
Weighted Average Cost of Capital
11.63%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
30.45%
Pre-Tax Cost of Debt38.54%
Tax Rate21.00%
Tax Shield8.09%
Capital Structure
Equity: 87.56%($23.33B)
Debt: 12.44%($3312.94M)
Equity Component
7.85%
87.56% × 8.96%
Debt Component
3.79%
12.44% × 30.45%

SoFi Technologies, Inc. Common Stock (SOFI) WACC in context

SoFi Technologies, Inc. Common Stock (SOFI) currently screens with an estimated WACC of 11.63%. That blends a 8.96% cost of equity, a 38.54% pre-tax cost of debt, and a 87.56% 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 SOFI WACC implies

A 11.63% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SOFI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 87.56% 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.