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Weibo Corporation (WB) — WACC Analysis

WACC Breakdown

Weibo Corporation (WB) has a weighted average cost of capital (WACC) of 5.6%. The cost of equity is 8.9%, derived from a beta of 0.82 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.1%. The capital structure is 43.4% equity and 56.6% debt.

Interpretation

A WACC of 5.6% suggests that the market views Weibo Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare WB's WACC of 5.6% against industry peers to gauge its relative financing costs. A beta of 0.82 reflects the stock's volatility relative to the broader market.

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VALUATION

WB WACC: 5.63% for Weibo Corporation

Current inputs imply a 8.91% cost of equity and a 3.93% 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

Weibo Corporation Common Stock (WB) WACC Results
Weighted Average Cost of Capital
5.63%
Cost of Equity
8.91%
Risk-Free Rate5.19%
Beta0.82
Market Risk Premium4.23%
Cost of Debt
3.11%
Pre-Tax Cost of Debt3.93%
Tax Rate21.00%
Tax Shield0.83%
Capital Structure
Equity: 43.43%($1609.16M)
Debt: 56.57%($2096.16M)
Equity Component
3.87%
43.43% × 8.91%
Debt Component
1.76%
56.57% × 3.11%

Weibo Corporation (WB) WACC in context

Weibo Corporation (WB) currently screens with an estimated WACC of 5.63%. That blends a 8.91% cost of equity, a 3.93% pre-tax cost of debt, and a 43.43% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What WB WACC implies

A 5.63% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.82 and equity accounts for 43.43% 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.