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STMicroelectronics N.V. (STM) — WACC Analysis

WACC Breakdown

STMicroelectronics N.V. (STM) has a weighted average cost of capital (WACC) of 10.7%. The cost of equity is 11.1%, derived from a beta of 1.77 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.0%. The capital structure is 95.4% equity and 4.6% debt.

Interpretation

A WACC of 10.7% is moderate, reflecting the market's balanced risk assessment of STMicroelectronics N.V..

Investors can compare STM's WACC of 10.7% against industry peers to gauge its relative financing costs. A beta of 1.77 reflects the stock's volatility relative to the broader market.

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VALUATION

STM WACC: 10.65% for STMicroelectronics N.V.

Current inputs imply a 11.07% cost of equity and a 2.58% 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

STMicroelectronics N.V. Common Stock (STM) WACC Results
Weighted Average Cost of Capital
10.65%
Cost of Equity
11.07%
Risk-Free Rate4.67%
Beta1.77
Market Risk Premium4.23%
Cost of Debt
2.04%
Pre-Tax Cost of Debt2.58%
Tax Rate21.00%
Tax Shield0.54%
Capital Structure
Equity: 95.38%($44.05B)
Debt: 4.62%($2133.00M)
Equity Component
10.56%
95.38% × 11.07%
Debt Component
0.09%
4.62% × 2.04%

STMicroelectronics N.V. (STM) WACC in context

STMicroelectronics N.V. (STM) currently screens with an estimated WACC of 10.65%. That blends a 11.07% cost of equity, a 2.58% pre-tax cost of debt, and a 95.38% 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 STM WACC implies

A 10.65% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates STM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.77 and equity accounts for 95.38% 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.

STM WACC: 10.65% — STMicroelectronics N.V. Cost of Capital (August 2026) | DeepViews