XFAB.PA
X Fab Silicon Foundries EV
Price:  
6.72 
EUR
Volume:  
127,492
Belgium | Semiconductors & Semiconductor Equipment

XFAB.PA WACC - Weighted Average Cost of Capital

The WACC of X Fab Silicon Foundries EV (XFAB.PA) is 8.7%.

The Cost of Equity of X Fab Silicon Foundries EV (XFAB.PA) is 10.6%.
The Cost of Debt of X Fab Silicon Foundries EV (XFAB.PA) is 5.3%.

RangeSelected
Cost of equity7.6% - 13.6%10.6%
Tax rate19.7% - 24.2%21.95%
Cost of debt4.0% - 6.6%5.3%
WACC6.3% - 11.1%8.7%
WACC

XFAB.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.791.4
Additional risk adjustments0.0%0.5%
Cost of equity7.6%13.6%
Tax rate19.7%24.2%
Debt/Equity ratio
0.410.41
Cost of debt4.0%6.6%
After-tax WACC6.3%11.1%
Selected WACC8.7%

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 (10.60%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.