MXL
Maxlinear Inc
Price:  
15.72 
USD
Volume:  
1,028,468.00
United States | Semiconductors & Semiconductor Equipment
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Maxlinear WACC - Weighted Average Cost of Capital

The WACC of Maxlinear Inc (MXL) is 9.9%.

The Cost of Equity of Maxlinear Inc (MXL) is 10.35%.
The Cost of Debt of Maxlinear Inc (MXL) is 6.20%.

Range Selected
Cost of equity 8.10% - 12.60% 10.35%
Tax rate 13.40% - 14.40% 13.90%
Cost of debt 5.40% - 7.00% 6.20%
WACC 7.8% - 12.0% 9.9%
WACC

Maxlinear WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.93 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 12.60%
Tax rate 13.40% 14.40%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.40% 7.00%
After-tax WACC 7.8% 12.0%
Selected WACC 9.9%

Maxlinear'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 Maxlinear:

cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.93) + 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.