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UWM Holdings Corporation (UWMC) — WACC Analysis

WACC Breakdown

UWM Holdings Corporation (UWMC) has a weighted average cost of capital (WACC) of 18.0%. The cost of equity is 9.4%, derived from a beta of 1.09 and a risk-free rate of 5.0%. The after-tax cost of debt is 19.3%. The capital structure is 13.2% equity and 86.8% debt.

Interpretation

A WACC of 18.0% indicates that the market perceives UWM Holdings Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare UWMC's WACC of 18.0% against industry peers to gauge its relative financing costs. A beta of 1.09 reflects the stock's volatility relative to the broader market.

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VALUATION

UWMC WACC: 18.01% for UWM Holdings Corporation

Current inputs imply a 9.44% cost of equity and a 19.32% 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

UWM Holdings Corporation Common Stock (UWMC) WACC Results
Weighted Average Cost of Capital
18.01%
Cost of Equity
9.44%
Risk-Free Rate4.96%
Beta1.09
Market Risk Premium4.23%
Cost of Debt
19.32%
Pre-Tax Cost of Debt19.32%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 13.23%($455.21M)
Debt: 86.77%($2984.33M)
Equity Component
1.25%
13.23% × 9.44%
Debt Component
16.76%
86.77% × 19.32%

UWM Holdings Corporation (UWMC) WACC in context

UWM Holdings Corporation (UWMC) currently screens with an estimated WACC of 18.01%. That blends a 9.44% cost of equity, a 19.32% pre-tax cost of debt, and a 13.23% 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 UWMC WACC implies

A 18.01% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates UWMC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.09 and equity accounts for 13.23% 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.