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Cohu Inc (COHU) — WACC Analysis

WACC Breakdown

Cohu Inc (COHU) has a weighted average cost of capital (WACC) of 10.4%. The cost of equity is 11.4%, derived from a beta of 1.76 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.2%. The capital structure is 89.3% equity and 10.7% debt.

Interpretation

A WACC of 10.4% is moderate, reflecting the market's balanced risk assessment of Cohu Inc.

Investors can compare COHU's WACC of 10.4% against industry peers to gauge its relative financing costs. A beta of 1.76 reflects the stock's volatility relative to the broader market.

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VALUATION

COHU WACC: 10.44% for Cohu Inc

Current inputs imply a 11.42% cost of equity and a 2.21% 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

Cohu Inc Common Stock (COHU) WACC Results
Weighted Average Cost of Capital
10.44%
Cost of Equity
11.42%
Risk-Free Rate5.05%
Beta1.76
Market Risk Premium4.23%
Cost of Debt
2.21%
Pre-Tax Cost of Debt2.21%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 89.33%($2527.87M)
Debt: 10.67%($302.06M)
Equity Component
10.20%
89.33% × 11.42%
Debt Component
0.24%
10.67% × 2.21%

Cohu Inc (COHU) WACC in context

Cohu Inc (COHU) currently screens with an estimated WACC of 10.44%. That blends a 11.42% cost of equity, a 2.21% pre-tax cost of debt, and a 89.33% 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 COHU WACC implies

A 10.44% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates COHU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.76 and equity accounts for 89.33% 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.