Question 1

What is iQIYI, Inc. American Depositary Shares's WACC?

Accepted Answer

iQIYI, Inc. American Depositary Shares (IQ) has a Weighted Average Cost of Capital (WACC) of 7.55%. This is calculated using a Cost of Equity of 8.46% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 8.71%, with an equity weight of 42.28% in the capital structure.

Question 2

Is iQIYI, Inc. American Depositary Shares's WACC high or low?

Accepted Answer

iQIYI, Inc. American Depositary Shares's WACC of 7.55% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is iQIYI, Inc. American Depositary Shares's WACC calculated?

Accepted Answer

iQIYI, Inc. American Depositary Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.46% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 8.71%. The capital structure is 42.28% equity and 57.72% debt.

iQIYI, Inc. American Depositary Shares (IQ) — WACC 分析

WACC 构成

解读

iQIYI, Inc. American Depositary Shares（IQ）WACC：7.55%

WACC计算器

iQIYI, Inc. American Depositary Shares（IQ） WACC 解读

IQ 公司分析

IQ DCF 估值

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