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Surf Air Mobility Inc. (SRFM) — WACC Analysis

WACC Breakdown

Surf Air Mobility Inc. (SRFM) has a weighted average cost of capital (WACC) of 16.5%. The cost of equity is 12.8%, derived from a beta of 2.19 and a risk-free rate of 5.2%. The after-tax cost of debt is 35.4%. The capital structure is 83.9% equity and 16.1% debt.

Interpretation

A WACC of 16.5% indicates that the market perceives Surf Air Mobility Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare SRFM's WACC of 16.5% against industry peers to gauge its relative financing costs. A beta of 2.19 reflects the stock's volatility relative to the broader market.

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VALUATION

SRFM WACC: 16.46% for Surf Air Mobility Inc.

Current inputs imply a 12.83% cost of equity and a 35.44% 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

Surf Air Mobility Inc. Common Stock (SRFM) WACC Results
Weighted Average Cost of Capital
16.46%
Cost of Equity
12.83%
Risk-Free Rate5.24%
Beta2.19
Market Risk Premium4.23%
Cost of Debt
35.44%
Pre-Tax Cost of Debt35.44%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 83.94%($118.08M)
Debt: 16.06%($22.59M)
Equity Component
10.77%
83.94% × 12.83%
Debt Component
5.69%
16.06% × 35.44%

Surf Air Mobility Inc. (SRFM) WACC in context

Surf Air Mobility Inc. (SRFM) currently screens with an estimated WACC of 16.46%. That blends a 12.83% cost of equity, a 35.44% pre-tax cost of debt, and a 83.94% 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.

What SRFM WACC implies

A 16.46% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates SRFM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.19 and equity accounts for 83.94% 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.