Question 1

What is PayPal Holdings, Inc. Common Stock's WACC?

Accepted Answer

PayPal Holdings, Inc. Common Stock (PYPL) has a Weighted Average Cost of Capital (WACC) of 8.71%. This is calculated using a Cost of Equity of 9.89% (via CAPM with a beta of 1.39) and a pre-tax Cost of Debt of 4.77%, with an equity weight of 80.68% in the capital structure.

Question 2

Is PayPal Holdings, Inc. Common Stock's WACC high or low?

Accepted Answer

PayPal Holdings, Inc. Common Stock's WACC of 8.71% falls within the typical 8-12% range for mid-cap growth companies. 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 PayPal Holdings, Inc. Common Stock's WACC calculated?

Accepted Answer

PayPal Holdings, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.89% is derived from the CAPM model using a beta of 1.39. The pre-tax Cost of Debt (Rd) is 4.77%. The capital structure is 80.68% equity and 19.32% debt.

PayPal Holdings, Inc. Common Stock (PYPL) — WACC 分析

WACC 构成

解读

PayPal Holdings, Inc. Common Stock（PYPL）WACC：8.71%

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PayPal Holdings, Inc. Common Stock（PYPL） WACC 解读

PYPL 公司分析

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