Skip to content

First Solar, Inc. (FSLR) — WACC Analysis

WACC Breakdown

First Solar, Inc. (FSLR) has a weighted average cost of capital (WACC) of 9.3%. The cost of equity is 9.2%, derived from a beta of 1.09 and a risk-free rate of 4.7%. The after-tax cost of debt is 81.0%. The capital structure is 99.8% equity and 0.2% debt.

Interpretation

A WACC of 9.3% is moderate, reflecting the market's balanced risk assessment of First Solar, Inc..

Investors can compare FSLR's WACC of 9.3% against industry peers to gauge its relative financing costs. A beta of 1.09 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

FSLR WACC: 9.34% for First Solar, Inc.

Current inputs imply a 9.21% cost of equity and a 102.56% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

First Solar, Inc. Common Stock (FSLR) WACC Results
Weighted Average Cost of Capital
9.34%
Cost of Equity
9.21%
Risk-Free Rate4.73%
Beta1.09
Market Risk Premium4.23%
Cost of Debt
81.03%
Pre-Tax Cost of Debt102.56%
Tax Rate21.00%
Tax Shield21.54%
Capital Structure
Equity: 99.83%($21.97B)
Debt: 0.17%($37.63M)
Equity Component
9.20%
99.83% × 9.21%
Debt Component
0.14%
0.17% × 81.03%

First Solar, Inc. (FSLR) WACC in context

First Solar, Inc. (FSLR) currently screens with an estimated WACC of 9.34%. That blends a 9.21% cost of equity, a 102.56% pre-tax cost of debt, and a 99.83% 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 FSLR WACC implies

A 9.34% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FSLR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.09 and equity accounts for 99.83% 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.