MAXN
Maxeon Solar Technologies Ltd
Price:  
2.90 
USD
Volume:  
67,721.00
Singapore | Semiconductors & Semiconductor Equipment
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MAXN WACC - Weighted Average Cost of Capital

The WACC of Maxeon Solar Technologies Ltd (MAXN) is 10.3%.

The Cost of Equity of Maxeon Solar Technologies Ltd (MAXN) is 36.85%.
The Cost of Debt of Maxeon Solar Technologies Ltd (MAXN) is 7.05%.

Range Selected
Cost of equity 25.60% - 48.10% 36.85%
Tax rate 3.80% - 7.60% 5.70%
Cost of debt 7.00% - 7.10% 7.05%
WACC 9.0% - 11.5% 10.3%
WACC

MAXN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 4.73 7.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 25.60% 48.10%
Tax rate 3.80% 7.60%
Debt/Equity ratio 7.41 7.41
Cost of debt 7.00% 7.10%
After-tax WACC 9.0% 11.5%
Selected WACC 10.3%

MAXN'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 MAXN:

cost_of_equity (36.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.73) + 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.