Shift Technologies, Inc. (SFT) WACC Analysis

As of May 27, 2025, Shift Technologies, Inc. (SFT) carries a Weighted Average Cost of Capital (WACC) of 8.4%. WACC reflects the blended rate Shift Technologies, Inc. must pay to both equity and debt holders.

Within that, the cost of equity is 114.3%, the cost of debt is 7.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 22.03 – 24.59
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 66.49

What It Means for Investors

With a selected WACC of 8.4%, Shift Technologies, Inc. must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.