AAOI WACC: 12.84% for Applied Optoelectronics, Inc.
Current inputs imply a 12.85% cost of equity and a 8.31% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.
WACC Calculator
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Applied Optoelectronics, Inc. (AAOI) WACC in context
Applied Optoelectronics, Inc. (AAOI) currently screens with an estimated WACC of 12.84%. That blends a 12.85% cost of equity, a 8.31% pre-tax cost of debt, and a 99.59% equity weight into the discount rate you would typically use in a DCF model.
screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.
A 12.84% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.
This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.42 and equity accounts for 99.59% of capital.
Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.
Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.