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Virgin Galactic Holdings, Inc. (SPCE) — WACC Analysis

WACC Breakdown

Virgin Galactic Holdings, Inc. (SPCE) has a weighted average cost of capital (WACC) of 9.6%. The cost of equity is 12.3%, derived from a beta of 2.10 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.6%. The capital structure is 65.4% equity and 34.6% debt.

Interpretation

A WACC of 9.6% is moderate, reflecting the market's balanced risk assessment of Virgin Galactic Holdings, Inc..

Investors can compare SPCE's WACC of 9.6% against industry peers to gauge its relative financing costs. A beta of 2.10 reflects the stock's volatility relative to the broader market.

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VALUATION

SPCE WACC: 9.65% for Virgin Galactic Holdings, Inc.

Current inputs imply a 12.31% cost of equity and a 4.62% 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

Virgin Galactic Holdings, Inc. Common Stock (SPCE) WACC Results
Weighted Average Cost of Capital
9.65%
Cost of Equity
12.31%
Risk-Free Rate4.98%
Beta2.10
Market Risk Premium4.23%
Cost of Debt
4.62%
Pre-Tax Cost of Debt4.62%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 65.39%($413.86M)
Debt: 34.61%($219.04M)
Equity Component
8.05%
65.39% × 12.31%
Debt Component
1.60%
34.61% × 4.62%

Virgin Galactic Holdings, Inc. (SPCE) WACC in context

Virgin Galactic Holdings, Inc. (SPCE) currently screens with an estimated WACC of 9.65%. That blends a 12.31% cost of equity, a 4.62% pre-tax cost of debt, and a 65.39% 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 SPCE WACC implies

A 9.65% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SPCE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.10 and equity accounts for 65.39% 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.