Opendoor TechnologiesOPEN +2.74%56 WACC % is 24.1% as of Jun. 24, 2026, which is 146% above its 10-year median of 9.79. GuruFocus rates OPEN with a GF Score™ of 56/100 and a GF Value™ of $1.24 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,841 Real Estate companies, Opendoor Technologies ranks worse than 99.35% on this metric.
As of today (2026-06-24), Opendoor Technologies's weighted average cost of capital is 24.1%%. Opendoor Technologies's ROIC % is -21.43% (calculated using TTM income statement data).
Opendoor Technologies 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.
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, Opendoor Technologies's weighted average cost of capital is 24.1%%. Opendoor Technologies's ROIC % is -21.43% (calculated using TTM income statement data).
Opendoor Technologies 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.
* 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 Real Estate Services subindustry, Opendoor Technologies'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.
Opendoor Technologies WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Opendoor Technologies's WACC % distribution charts can be found below:
* The bar in red indicates where Opendoor Technologies'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, Opendoor Technologies's market capitalization (E) is $4162.841 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, Opendoor Technologies's latest one-year quarterly average Book Value of Debt (D) is $1831 Mil.
a) weight of equity = E / (E + D) = 4162.841 / (4162.841 + 1831) = 0.6945
b) weight of debt = D / (E + D) = 1831 / (4162.841 + 1831) = 0.3055
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 4.406%. 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. Opendoor Technologies's beta is 4.5636.
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 = 4.406% + 4.5636 * 6% = 31.7876%
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, Opendoor Technologies's interest expense (positive number) was $121 Mil. Its total Book Value of Debt (D) is $1831 Mil.
Cost of Debt = 121 / 1831 = 6.6084%.
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 / -1388 = 0%.
Opendoor Technologies'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)
=
0.6945
*
31.7876%
+
0.3055
*
6.6084%
*
(1 - 0%)
=
24.1%
* 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.
Opendoor Technologies (OPEN) has a WACC % of 24.1% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Opendoor Technologies and its competitors. This is 146% above median its historical median of 9.79. Over the past decade, Opendoor Technologies' WACC % has ranged from 6.09 to 32.37. According to the industry distribution chart, Opendoor Technologies ranks #1829 out of 1841 companies in the Real Estate industry, placing it in the top 99.3%.
Is Opendoor Technologies' WACC % too high?
Opendoor Technologies' current WACC % of 24.1% is 146% above median its 10-year median of 9.79. Over the past 10 years, this metric has ranged from a low of 6.09 to a high of 32.37. The Real Estate industry median WACC % is 6.53. Opendoor Technologies' value of 24.1% is 269.1% above this industry median. Based on the distribution chart, Opendoor Technologies ranks #1829 out of 1841 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Opendoor Technologies has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Opendoor Technologies' WACC % compare to COMP and CWK?
According to the Real Estate industry distribution chart, Opendoor Technologies ranks #1829 out of 1841 companies for WACC %. This places Opendoor Technologies in the lower half of its industry. The industry median WACC % is 6.53. Opendoor Technologies' value of 24.1% is 269.1% above this benchmark. Historically, Opendoor Technologies' own WACC % has ranged from 6.09 to 32.37 over the past decade. While the company's 10-year median is 9.79 vs. the industry median of 6.53, Opendoor Technologies 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 Real Estate company?
The median WACC % among Real Estate companies is 6.53, based on 1,841 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. Opendoor Technologies's current WACC % of 24.1% is 269.1% 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 Opendoor Technologies and its competitors. For the Real Estate industry, the median WACC % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Opendoor Technologies's current WACC % is 24.1%, which is 146% above median its own 10-year median of 9.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Opendoor Technologies stock overvalued right now?
Based on GuruFocus' analysis, Opendoor Technologies (OPEN) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.24, compared to a current price of $4.32 — trading 248% above its estimated fair value. The current WACC % is 24.1%, which is 146% above median its 10-year median of 9.79 and 269.1% above the Real Estate industry median of 6.53. Opendoor Technologies' overall GF Score™ is 56/100 with 3 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 Opendoor Technologies (OPEN), the current WACC % is 24.1% as of Jun. 24, 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 Opendoor Technologies (OPEN) Overvalued in 2026?
Based on GuruFocus' analysis, Opendoor Technologies stock appears to be overvalued.
The current stock price of $4.32 is trading 248% above its estimated GF Value™ of $1.24.
GuruFocus considers Opendoor Technologies to be Significantly Overvalued.
Key valuation signals for OPEN:
WACC %: 24.1% (146% above median its 10-year median of 9.79)
GF Value™: $1.24 vs. price of $4.32 (248% above fair value)
Industry Position: 269.1% above the Real Estate median (#1829 of 1841)
No single metric tells the full story. See the OPEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Opendoor Technologies Inc is an end-to-end real estate platform enabling customers to sell and buy a home online. Its product offerings include Sell to Opendoor, its core product where sellers sell their homes directly to the company, and it resells those homes to buyers; List with Opendoor, for customers to list their homes with a partner agent; and Opendoor Marketplace, a capital-light marketplace offering that connects home sellers with both institutional and retail buyers. In addition to these products, the company also offers its customers integrated title insurance and escrow services through its subsidiaries. A vast majority of the company's revenue is generated by its core product offering, where it acquires homes directly from sellers and resells those homes to buyers.
56GF Score
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