WACC ≈ Cost of Equity (RKLB has negligible financial debt vs $1.38B cash). Beta-fade blends raw β (2.31) toward A&D sector median (1.0) at 2/3 weight, yielding faded β = 1.50. Data snapshot: 2026-05-27.
Sensitivity Analysis
WACC vs Terminal Growth
Revenue CAGR vs EBIT Margin
Beta vs Risk-Free Rate
Tables 1 & 3 reuse the model's explicit-period FCF schedule. Table 2 recalculates a uniform-CAGR growth path with terminal-state cost assumptions (tax 21%, D&A 4%, CapEx 5%, NWC 5%).
Center cell (highlighted) = base case implied price. All values in $/share.
Key Assumptions
Why DCF implies price far below $144: Rocket Lab is pre-profit with negative FCF through FY28. Even the bull case (FY32 FCF ~$752M) discounted at 11% WACC yields EV far below the current market cap. The market prices RKLB on revenue multiples, Neutron optionality, and defense contract narrative — not discounted cash flows. This DCF quantifies how aggressive those implied assumptions are.