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Onto Innovation Inc. (ONTO) — WACC Analysis

WACC Breakdown

Onto Innovation Inc. (ONTO) has a weighted average cost of capital (WACC) of 11.1%. The cost of equity is 12.2%, derived from a beta of 2.08 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 89.3% equity and 10.7% debt.

Interpretation

A WACC of 11.1% is moderate, reflecting the market's balanced risk assessment of Onto Innovation Inc..

Investors can compare ONTO's WACC of 11.1% against industry peers to gauge its relative financing costs. A beta of 2.08 reflects the stock's volatility relative to the broader market.

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VALUATION

ONTO WACC: 11.09% for Onto Innovation Inc.

Current inputs imply a 12.24% cost of equity and a 2.00% 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

Onto Innovation Inc. Common Stock (ONTO) WACC Results
Weighted Average Cost of Capital
11.09%
Cost of Equity
12.24%
Risk-Free Rate4.96%
Beta2.08
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 89.29%($12.27B)
Debt: 10.71%($1471.73M)
Equity Component
10.93%
89.29% × 12.24%
Debt Component
0.17%
10.71% × 1.58%

Onto Innovation Inc. (ONTO) WACC in context

Onto Innovation Inc. (ONTO) currently screens with an estimated WACC of 11.09%. That blends a 12.24% cost of equity, a 2.00% pre-tax cost of debt, and a 89.29% 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 ONTO WACC implies

A 11.09% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ONTO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.08 and equity accounts for 89.29% 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.