HIMX
Himax Technologies Inc
Price:  
8.93 
USD
Volume:  
1,480,949.00
Taiwan, Province of China | Semiconductors & Semiconductor Equipment
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HIMX WACC - Weighted Average Cost of Capital

The WACC of Himax Technologies Inc (HIMX) is 8.3%.

The Cost of Equity of Himax Technologies Inc (HIMX) is 9.90%.
The Cost of Debt of Himax Technologies Inc (HIMX) is 4.25%.

Range Selected
Cost of equity 7.60% - 12.20% 9.90%
Tax rate 13.40% - 17.00% 15.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.6% - 10.1% 8.3%
WACC

HIMX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 12.20%
Tax rate 13.40% 17.00%
Debt/Equity ratio 0.33 0.33
Cost of debt 4.00% 4.50%
After-tax WACC 6.6% 10.1%
Selected WACC 8.3%

HIMX'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 HIMX:

cost_of_equity (9.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.