XFAB.PA WACC - Weighted Average Cost of Capital
The WACC of X Fab Silicon Foundries EV (XFAB.PA) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.5% - 13.8% | 10.65% |
| Tax rate | 19.7% - 24.2% | 21.95% |
| Cost of debt | 4.0% - 6.6% | 5.3% |
| WACC | 6.0% - 10.7% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.78 | 1.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 13.8% |
| Tax rate | 19.7% | 24.2% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 4.0% | 6.6% |
| After-tax WACC | 6.0% | 10.7% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XFAB.PA | X Fab Silicon Foundries EV | 0.54 | 1.77 | 1.25 |
| CML.L | CML Microsystems Plc | 0.02 | 0.01 | 0.01 |
| ELG.DE | Elmos Semiconductor SE | 0.09 | 1.49 | 1.39 |
| KMK.L | Kromek Group PLC | 0.33 | 0.3 | 0.24 |
| MEMS.PA | Memscap SA | 0.19 | 1.8 | 1.58 |
| MLS.WA | ML System SA | 1.13 | 1.23 | 0.66 |
| NANO.L | Nanoco Group PLC | 0.08 | 1.31 | 1.24 |
| SIS.DE | First Sensor AG | 0.01 | -0.11 | -0.11 |
| UBXN.SW | U Blox Holding AG | 0.04 | 1.15 | 1.11 |
| WIHN.SW | Wisekey International Holding AG | 0.09 | -0.2 | -0.19 |
| Low | High | |
| Unlevered beta | 0.49 | 1.16 |
| Relevered beta | 0.67 | 1.64 |
| Adjusted relevered beta | 0.78 | 1.43 |
XFAB.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 XFAB.PA:
cost_of_equity (10.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.78) + 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.