SOI.PA
Soitec SA
Price:  
52.28 
EUR
Volume:  
133,682.00
France | Semiconductors & Semiconductor Equipment
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SOI.PA WACC - Weighted Average Cost of Capital

The WACC of Soitec SA (SOI.PA) is 9.1%.

The Cost of Equity of Soitec SA (SOI.PA) is 11.05%.
The Cost of Debt of Soitec SA (SOI.PA) is 4.25%.

Range Selected
Cost of equity 8.70% - 13.40% 11.05%
Tax rate 3.30% - 6.60% 4.95%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.3% - 10.8% 9.1%
WACC

SOI.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.99 1.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 13.40%
Tax rate 3.30% 6.60%
Debt/Equity ratio 0.4 0.4
Cost of debt 4.00% 4.50%
After-tax WACC 7.3% 10.8%
Selected WACC 9.1%

SOI.PA'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 SOI.PA:

cost_of_equity (11.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.99) + 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.