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Illumina Inc (ILMN) — WACC Analysis

WACC Breakdown

Illumina Inc (ILMN) has a weighted average cost of capital (WACC) of 9.7%. The cost of equity is 9.6%, derived from a beta of 1.24 and a risk-free rate of 4.7%. The after-tax cost of debt is 15.5%. The capital structure is 98.5% equity and 1.5% debt.

Interpretation

A WACC of 9.7% is moderate, reflecting the market's balanced risk assessment of Illumina Inc.

Investors can compare ILMN's WACC of 9.7% against industry peers to gauge its relative financing costs. A beta of 1.24 reflects the stock's volatility relative to the broader market.

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VALUATION

ILMN WACC: 9.73% for Illumina Inc

Current inputs imply a 9.64% cost of equity and a 19.60% 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

Illumina Inc Common Stock (ILMN) WACC Results
Weighted Average Cost of Capital
9.73%
Cost of Equity
9.64%
Risk-Free Rate4.73%
Beta1.24
Market Risk Premium4.23%
Cost of Debt
15.48%
Pre-Tax Cost of Debt19.60%
Tax Rate21.00%
Tax Shield4.12%
Capital Structure
Equity: 98.49%($32.55B)
Debt: 1.51%($500.00M)
Equity Component
9.49%
98.49% × 9.64%
Debt Component
0.23%
1.51% × 15.48%

Illumina Inc (ILMN) WACC in context

Illumina Inc (ILMN) currently screens with an estimated WACC of 9.73%. That blends a 9.64% cost of equity, a 19.60% pre-tax cost of debt, and a 98.49% 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 ILMN WACC implies

A 9.73% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ILMN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.24 and equity accounts for 98.49% 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.