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Canadian Solar Inc. Common Shares (ON) (CSIQ) — WACC Analysis

WACC Breakdown

Canadian Solar Inc. Common Shares (ON) (CSIQ) has a weighted average cost of capital (WACC) of 4.0%. The cost of equity is 10.4%, derived from a beta of 1.53 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.1%. The capital structure is 10.2% equity and 89.8% debt.

Interpretation

A WACC of 4.0% suggests that the market views Canadian Solar Inc. Common Shares (ON) as relatively low-risk, with a lower cost of financing.

Investors can compare CSIQ's WACC of 4.0% against industry peers to gauge its relative financing costs. A beta of 1.53 reflects the stock's volatility relative to the broader market.

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VALUATION

CSIQ WACC: 4.00% for Canadian Solar Inc. Common Shares (ON)

Current inputs imply a 10.39% cost of equity and a 2.12% 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

Canadian Solar Inc. Common Shares (ON) Common Stock (CSIQ) WACC Results
Weighted Average Cost of Capital
4.00%
Cost of Equity
10.39%
Risk-Free Rate4.67%
Beta1.53
Market Risk Premium4.23%
Cost of Debt
2.12%
Pre-Tax Cost of Debt2.12%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 10.15%($949.20M)
Debt: 89.85%($8399.31M)
Equity Component
1.06%
10.15% × 10.39%
Debt Component
1.91%
89.85% × 2.12%

Canadian Solar Inc. Common Shares (ON) (CSIQ) WACC in context

Canadian Solar Inc. Common Shares (ON) (CSIQ) currently screens with an estimated WACC of 4.00%. That blends a 10.39% cost of equity, a 2.12% pre-tax cost of debt, and a 10.15% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CSIQ WACC implies

A 4.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CSIQ

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.53 and equity accounts for 10.15% 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.