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Exelixis Inc (EXEL) — WACC Analysis

WACC Breakdown

Exelixis Inc (EXEL) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 7.8%, derived from a beta of 0.59 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.0%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 7.8% suggests that the market views Exelixis Inc as relatively low-risk, with a lower cost of financing.

Investors can compare EXEL's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

EXEL WACC: 7.75% for Exelixis Inc

Current inputs imply a 7.75% cost of equity and a 5.00% 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

Exelixis Inc Common Stock (EXEL) WACC Results
Weighted Average Cost of Capital
7.75%
Cost of Equity
7.75%
Risk-Free Rate4.68%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
3.95%
Pre-Tax Cost of Debt5.00%
Tax Rate21.00%
Tax Shield1.05%
Capital Structure
Equity: 100.00%($13.33B)
Debt: 0.00%($0.00M)
Equity Component
7.75%
100.00% × 7.75%
Debt Component
0.00%
0.00% × 3.95%

Exelixis Inc (EXEL) WACC in context

Exelixis Inc (EXEL) currently screens with an estimated WACC of 7.75%. That blends a 7.75% cost of equity, a 5.00% pre-tax cost of debt, and a 100.00% 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 EXEL WACC implies

A 7.75% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EXEL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 100.00% 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.