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Virtu Financial, Inc. Class A (VIRT) — WACC Analysis

WACC Breakdown

Virtu Financial, Inc. Class A (VIRT) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.4%. The capital structure is 72.3% equity and 27.7% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Virtu Financial, Inc. Class A.

Investors can compare VIRT's WACC of 8.1% 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

VIRT WACC: 8.13% for Virtu Financial, Inc. Class A

Current inputs imply a 9.19% cost of equity and a 6.81% 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

Virtu Financial, Inc. Class A Common Stock (VIRT) WACC Results
Weighted Average Cost of Capital
8.13%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
5.38%
Pre-Tax Cost of Debt6.81%
Tax Rate21.00%
Tax Shield1.43%
Capital Structure
Equity: 72.32%($5291.86M)
Debt: 27.68%($2025.11M)
Equity Component
6.65%
72.32% × 9.19%
Debt Component
1.49%
27.68% × 5.38%

Virtu Financial, Inc. Class A (VIRT) WACC in context

Virtu Financial, Inc. Class A (VIRT) currently screens with an estimated WACC of 8.13%. That blends a 9.19% cost of equity, a 6.81% pre-tax cost of debt, and a 72.32% 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 VIRT WACC implies

A 8.13% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates VIRT

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 72.32% 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.