PXLW
Pixelworks Inc
Price:  
6.87 
USD
Volume:  
10,936.00
United States | Semiconductors & Semiconductor Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PXLW WACC - Weighted Average Cost of Capital

The WACC of Pixelworks Inc (PXLW) is 8.5%.

The Cost of Equity of Pixelworks Inc (PXLW) is 10.20%.
The Cost of Debt of Pixelworks Inc (PXLW) is 7.00%.

Range Selected
Cost of equity 8.50% - 11.90% 10.20%
Tax rate 1.50% - 1.90% 1.70%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.7% - 9.4% 8.5%
WACC

PXLW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.90%
Tax rate 1.50% 1.90%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 7.7% 9.4%
Selected WACC 8.5%

PXLW'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 PXLW:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.