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Ichor Holdings (ICHR) — WACC Analysis

WACC Breakdown

Ichor Holdings (ICHR) has a weighted average cost of capital (WACC) of 12.7%. The cost of equity is 13.1%, derived from a beta of 2.29 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.4%. The capital structure is 94.4% equity and 5.6% debt.

Interpretation

A WACC of 12.7% indicates that the market perceives Ichor Holdings as higher-risk, requiring a greater return to compensate investors.

Investors can compare ICHR's WACC of 12.7% against industry peers to gauge its relative financing costs. A beta of 2.29 reflects the stock's volatility relative to the broader market.

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VALUATION

ICHR WACC: 12.66% for Ichor Holdings

Current inputs imply a 13.09% cost of equity and a 5.37% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Ichor Holdings Common Stock (ICHR) WACC Results
Weighted Average Cost of Capital
12.66%
Cost of Equity
13.09%
Risk-Free Rate5.22%
Beta2.29
Market Risk Premium4.23%
Cost of Debt
5.37%
Pre-Tax Cost of Debt5.37%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 94.41%($2036.76M)
Debt: 5.59%($120.56M)
Equity Component
12.36%
94.41% × 13.09%
Debt Component
0.30%
5.59% × 5.37%

Ichor Holdings (ICHR) WACC in context

Ichor Holdings (ICHR) currently screens with an estimated WACC of 12.66%. That blends a 13.09% cost of equity, a 5.37% pre-tax cost of debt, and a 94.41% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What ICHR WACC implies

A 12.66% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates ICHR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.29 and equity accounts for 94.41% 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.