Upstart HoldingsFRA:855 -1.96%62 WACC % is 18.53% as of Jun. 27, 2026, which is 76% above its 10-year median of 10.53. GuruFocus rates FRA:855 with a GF Score™ of 62/100 and a GF Value™ of €52.58 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 555 Credit Services companies, Upstart Holdings ranks worse than 93.33% on this metric.
As of today (2026-06-27), Upstart Holdings's weighted average cost of capital is 18.53%%. Upstart Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
Upstart Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Upstart Holdings (FRA:855) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Upstart Holdings's weighted average cost of capital is 18.53%%. Upstart Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
Upstart Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Upstart Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Upstart Holdings's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Upstart Holdings's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Upstart Holdings WACC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Upstart Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Upstart Holdings's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Upstart Holdings's market capitalization (E) is €2835.662 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Upstart Holdings's latest one-year quarterly average Book Value of Debt (D) is €1485.6018 Mil.
a) weight of equity = E / (E + D) = 2835.662 / (2835.662 + 1485.6018) = 0.6562
b) weight of debt = D / (E + D) = 1485.6018 / (2835.662 + 1485.6018) = 0.3438
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Upstart Holdings's beta is 3.7035.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + 3.7035 * 6% = 26.597%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Upstart Holdings's interest expense (positive number) was €47.069 Mil. Its total Book Value of Debt (D) is €1485.6018 Mil.
Cost of Debt = 47.069 / 1485.6018 = 3.1683%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.67 / 42.796 = 1.57%.
Upstart Holdings's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.6562
*
26.597%
+
0.3438
*
3.1683%
*
(1 - 1.57%)
=
18.53%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Upstart Holdings (FRA:855) has a WACC % of 18.53% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Upstart Holdings and its competitors. This is 76% above median its historical median of 10.53. Over the past decade, Upstart Holdings' WACC % has ranged from 6.02 to 20.01. According to the industry distribution chart, Upstart Holdings ranks #518 out of 555 companies in the Credit Services industry, placing it in the top 93.3%.
Is Upstart Holdings' WACC % too high?
Upstart Holdings' current WACC % of 18.53% is 76% above median its 10-year median of 10.53. Over the past 10 years, this metric has ranged from a low of 6.02 to a high of 20.01. The Credit Services industry median WACC % is 7.29. Upstart Holdings' value of 18.53% is 154.2% above this industry median. Based on the distribution chart, Upstart Holdings ranks #518 out of 555 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Upstart Holdings has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Upstart Holdings' WACC % compare to BFH and WU?
According to the Credit Services industry distribution chart, Upstart Holdings ranks #518 out of 555 companies for WACC %. This places Upstart Holdings in the lower half of its industry. The industry median WACC % is 7.29. Upstart Holdings' value of 18.53% is 154.2% above this benchmark. Historically, Upstart Holdings' own WACC % has ranged from 6.02 to 20.01 over the past decade. While the company's 10-year median is 10.53 vs. the industry median of 7.29, Upstart Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Credit Services company?
The median WACC % among Credit Services companies is 7.29, based on 555 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Upstart Holdings's current WACC % of 18.53% is 154.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Upstart Holdings and its competitors. For the Credit Services industry, the median WACC % is 7.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Upstart Holdings's current WACC % is 18.53%, which is 76% above median its own 10-year median of 10.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upstart Holdings stock overvalued right now?
Based on GuruFocus' analysis, Upstart Holdings (FRA:855) is currently considered Possible Value Trap. The stock's GF Value™ is €52.58, compared to a current price of €27.70 — trading 47.3% below its estimated fair value. The current WACC % is 18.53%, which is 76% above median its 10-year median of 10.53 and 154.2% above the Credit Services industry median of 7.29. Upstart Holdings' overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Upstart Holdings (FRA:855), the current WACC % is 18.53% as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Upstart Holdings (FRA:855) Overvalued in 2026?
Based on GuruFocus' analysis, Upstart Holdings stock appears to be undervalued.
The current stock price of €27.70 is trading 47.3% below its estimated GF Value™ of €52.58.
GuruFocus considers Upstart Holdings to be Possible Value Trap.
Key valuation signals for FRA:855:
WACC %: 18.53% (76% above median its 10-year median of 10.53)
GF Value™: €52.58 vs. price of €27.70 (47.3% below fair value)
Industry Position: 154.2% above the Credit Services median (#518 of 555)
No single metric tells the full story. See the FRA:855 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. The company support development of different lending product offerings, which are grouped into three operating segments - Personal Lending (unsecured personal loans and small dollar loans), Auto Lending (auto refinance, auto retail loans, and auto secured personal loans), and Other (HELOCs and other).
62GF Score
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