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WeShop Holdings Limited Class A Ordinary Shares (WSHP) — WACC Analysis

WACC Breakdown

WeShop Holdings Limited Class A Ordinary Shares (WSHP) has a weighted average cost of capital (WACC) of 17.8%. The cost of equity is 16.5%, derived from a beta of 3.71 and a risk-free rate of 4.7%. The after-tax cost of debt is 191.9%. The capital structure is 99.3% equity and 0.7% debt.

Interpretation

A WACC of 17.8% indicates that the market perceives WeShop Holdings Limited Class A Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare WSHP's WACC of 17.8% against industry peers to gauge its relative financing costs. A beta of 3.71 reflects the stock's volatility relative to the broader market.

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VALUATION

WSHP WACC: 17.76% for WeShop Holdings Limited Class A Ordinary Shares

Current inputs imply a 16.54% cost of equity and a 191.93% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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
[03]
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

WeShop Holdings Limited Class A Ordinary Shares Common Stock (WSHP) WACC Results
Weighted Average Cost of Capital
17.76%
Cost of Equity
16.54%
Risk-Free Rate4.67%
Beta3.71
Market Risk Premium4.23%
Cost of Debt
191.93%
Pre-Tax Cost of Debt191.93%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.30%($65.39M)
Debt: 0.70%($0.46M)
Equity Component
16.43%
99.30% × 16.54%
Debt Component
1.33%
0.70% × 191.93%

WeShop Holdings Limited Class A Ordinary Shares (WSHP) WACC in context

WeShop Holdings Limited Class A Ordinary Shares (WSHP) currently screens with an estimated WACC of 17.76%. That blends a 16.54% cost of equity, a 191.93% pre-tax cost of debt, and a 99.30% 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 WSHP WACC implies

A 17.76% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates WSHP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 3.71 and equity accounts for 99.30% 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.