ACMR
ACM Research Inc
Price:  
26.51 
USD
Volume:  
512,631.00
United States | Semiconductors & Semiconductor Equipment
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ACMR WACC - Weighted Average Cost of Capital

The WACC of ACM Research Inc (ACMR) is 9.9%.

The Cost of Equity of ACM Research Inc (ACMR) is 10.65%.
The Cost of Debt of ACM Research Inc (ACMR) is 4.25%.

Range Selected
Cost of equity 8.40% - 12.90% 10.65%
Tax rate 14.80% - 18.30% 16.55%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.9% - 11.9% 9.9%
WACC

ACMR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.99 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 12.90%
Tax rate 14.80% 18.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 4.50%
After-tax WACC 7.9% 11.9%
Selected WACC 9.9%

ACMR's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ACMR:

cost_of_equity (10.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.