AMKR
Amkor Technology Inc
Price:  
21.51 
USD
Volume:  
1,086,478.00
United States | Semiconductors & Semiconductor Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Amkor WACC - Weighted Average Cost of Capital

The WACC of Amkor Technology Inc (AMKR) is 9.5%.

The Cost of Equity of Amkor Technology Inc (AMKR) is 10.75%.
The Cost of Debt of Amkor Technology Inc (AMKR) is 4.65%.

Range Selected
Cost of equity 8.80% - 12.70% 10.75%
Tax rate 11.40% - 14.20% 12.80%
Cost of debt 4.40% - 4.90% 4.65%
WACC 7.9% - 11.1% 9.5%
WACC

Amkor WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.08 1.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 12.70%
Tax rate 11.40% 14.20%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.40% 4.90%
After-tax WACC 7.9% 11.1%
Selected WACC 9.5%

Amkor'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 Amkor:

cost_of_equity (10.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.08) + 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.