VSH
Vishay Intertechnology Inc
Price:  
13.67 
USD
Volume:  
1,601,785.00
United States | Electronic Equipment, Instruments & Components
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VSH WACC - Weighted Average Cost of Capital

The WACC of Vishay Intertechnology Inc (VSH) is 9.3%.

The Cost of Equity of Vishay Intertechnology Inc (VSH) is 12.25%.
The Cost of Debt of Vishay Intertechnology Inc (VSH) is 4.55%.

Range Selected
Cost of equity 10.70% - 13.80% 12.25%
Tax rate 29.20% - 30.70% 29.95%
Cost of debt 4.00% - 5.10% 4.55%
WACC 8.1% - 10.4% 9.3%
WACC

VSH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.48 1.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.70% 13.80%
Tax rate 29.20% 30.70%
Debt/Equity ratio 0.49 0.49
Cost of debt 4.00% 5.10%
After-tax WACC 8.1% 10.4%
Selected WACC 9.3%

VSH'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 VSH:

cost_of_equity (12.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.48) + 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.