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XPeng Inc. American depositary shares, each representing two Class A ordinary shares (XPEV) — WACC Analysis

WACC Breakdown

XPeng Inc. American depositary shares, each representing two Class A ordinary shares (XPEV) has a weighted average cost of capital (WACC) of 9.4%. The cost of equity is 10.5%, derived from a beta of 1.53 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.9%. The capital structure is 85.9% equity and 14.1% debt.

Interpretation

A WACC of 9.4% is moderate, reflecting the market's balanced risk assessment of XPeng Inc. American depositary shares, each representing two Class A ordinary shares.

Investors can compare XPEV's WACC of 9.4% against industry peers to gauge its relative financing costs. A beta of 1.53 reflects the stock's volatility relative to the broader market.

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VALUATION

XPEV WACC: 9.39% for XPeng Inc. American depositary shares, each representing two Class A ordinary shares

Current inputs imply a 10.45% cost of equity and a 2.92% 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

XPeng Inc. American depositary shares, each representing two Class A ordinary shares Common Stock (XPEV) WACC Results
Weighted Average Cost of Capital
9.39%
Cost of Equity
10.45%
Risk-Free Rate4.73%
Beta1.53
Market Risk Premium4.23%
Cost of Debt
2.92%
Pre-Tax Cost of Debt2.92%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 85.87%($11.03B)
Debt: 14.13%($1815.29M)
Equity Component
8.98%
85.87% × 10.45%
Debt Component
0.41%
14.13% × 2.92%

XPeng Inc. American depositary shares, each representing two Class A ordinary shares (XPEV) WACC in context

XPeng Inc. American depositary shares, each representing two Class A ordinary shares (XPEV) currently screens with an estimated WACC of 9.39%. That blends a 10.45% cost of equity, a 2.92% pre-tax cost of debt, and a 85.87% 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 XPEV WACC implies

A 9.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates XPEV

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.53 and equity accounts for 85.87% 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.