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Adeia Inc. Common Stock (ADEA) — WACC Analysis

WACC Breakdown

Adeia Inc. Common Stock (ADEA) has a weighted average cost of capital (WACC) of 10.0%. The cost of equity is 10.4%, derived from a beta of 1.32 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.4%. The capital structure is 86.9% equity and 13.1% debt.

Interpretation

A WACC of 10.0% is moderate, reflecting the market's balanced risk assessment of Adeia Inc. Common Stock.

Investors can compare ADEA's WACC of 10.0% against industry peers to gauge its relative financing costs. A beta of 1.32 reflects the stock's volatility relative to the broader market.

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VALUATION

ADEA WACC: 9.96% for Adeia Inc. Common Stock

Current inputs imply a 10.35% cost of equity and a 9.35% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Adeia Inc. Common Stock Common Stock (ADEA) WACC Results
Weighted Average Cost of Capital
9.96%
Cost of Equity
10.35%
Risk-Free Rate5.22%
Beta1.32
Market Risk Premium4.23%
Cost of Debt
7.38%
Pre-Tax Cost of Debt9.35%
Tax Rate21.00%
Tax Shield1.96%
Capital Structure
Equity: 86.90%($2559.60M)
Debt: 13.10%($386.01M)
Equity Component
9.00%
86.90% × 10.35%
Debt Component
0.97%
13.10% × 7.38%

Adeia Inc. Common Stock (ADEA) WACC in context

Adeia Inc. Common Stock (ADEA) currently screens with an estimated WACC of 9.96%. That blends a 10.35% cost of equity, a 9.35% pre-tax cost of debt, and a 86.90% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ADEA WACC implies

A 9.96% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ADEA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.32 and equity accounts for 86.90% of capital.

What to do next

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.