Value Sense
PSTG
Pure Storage, Inc. (PSTG)
Last Price$49.4(5.8%)
Market Cap$16.8B
WACC
9.1%
Cost of Equity
9.2%
Cost of Debt
0.0%
Debt to Equity
1.7%
Beta
1.0
Stock quality
7/10
Good
PSTG
is 69.6% overvalued
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PSTG WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
9.2%
98.4%
Risk-free rate
4.2%
Beta
1.1
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.0%
1.6%
Average Cost of Debt
0.0%
Effective Tax Rate
21.9%
WACC
9.1%

WACC dynamics

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PSTG Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
1.1
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
9.2%

Cost of Equity dynamics

PSTG vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Pure Storage, Inc. logo
Pure Storage, Inc.PSTG
9.1%
2.8%
(16.7%)
2.2%
Median Peer Set
8.8%
(0.9%)
17.3%
5.1%
IonQ, Inc. logo
IonQ, Inc.IONQ
11.0%
N/A
N/A
N/A
Rigetti Computing, Inc. logo
Rigetti Computing, Inc.RGTI
10.9%
(8.3%)
58.3%
(625.5%)
Super Micro Computer, Inc. logo
Super Micro Computer, Inc.SMCI
9.3%
109.8%
79.3%
8.1%
Arista Networks, Inc. logo
Arista Networks, Inc.ANET
9.1%
19.5%
34.5%
40.7%
NetApp, Inc. logo
NetApp, Inc.NTAP
9.0%
(1.5%)
(19.3%)
15.7%
Seagate Technology Holdings plc logo
Seagate Technology Holdings plcSTX
8.6%
(11.3%)
N/A
5.1%
Logitech International S.A. logo
Logitech International S.A.LOGI
7.3%
(5.3%)
66.7%
14.2%
Western Digital Corporation logo
Western Digital CorporationWDC
7.0%
5.6%
(51.3%)
(6.1%)
HP Inc. logo
HP Inc.HPQ
6.9%
(0.3%)
(14.6%)
5.2%
Dell Technologies Inc. logo
Dell Technologies Inc.DELL
negative
(13.6%)
36.6%
3.6%

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FAQ

What is Pure Storage, Inc.'s discount rate as of Mar 03, 2025?

As of Mar 03, 2025, Pure Storage, Inc.'s discount rate is 9.08%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Pure Storage, Inc.'s capital structure and risk profile.

What is Pure Storage, Inc.'s weighted average cost of capital (WACC)?

Pure Storage, Inc.'s WACC as of Mar 03, 2025, is 9.08%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Pure Storage, Inc.'s cost of equity?

Pure Storage, Inc.'s cost of equity is 9.2%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.