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Skyworks Solutions Inc (SWKS) — WACC Analysis

WACC Breakdown

Skyworks Solutions Inc (SWKS) has a weighted average cost of capital (WACC) of 10.4%. The cost of equity is 10.7%, derived from a beta of 1.52 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.2%. The capital structure is 95.5% equity and 4.5% debt.

Interpretation

A WACC of 10.4% is moderate, reflecting the market's balanced risk assessment of Skyworks Solutions Inc.

Investors can compare SWKS's WACC of 10.4% against industry peers to gauge its relative financing costs. A beta of 1.52 reflects the stock's volatility relative to the broader market.

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VALUATION

SWKS WACC: 10.36% for Skyworks Solutions Inc

Current inputs imply a 10.75% cost of equity and a 2.75% 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

Skyworks Solutions Inc Common Stock (SWKS) WACC Results
Weighted Average Cost of Capital
10.36%
Cost of Equity
10.75%
Risk-Free Rate5.05%
Beta1.52
Market Risk Premium4.23%
Cost of Debt
2.17%
Pre-Tax Cost of Debt2.75%
Tax Rate21.00%
Tax Shield0.58%
Capital Structure
Equity: 95.48%($21.03B)
Debt: 4.52%($996.60M)
Equity Component
10.26%
95.48% × 10.75%
Debt Component
0.10%
4.52% × 2.17%

Skyworks Solutions Inc (SWKS) WACC in context

Skyworks Solutions Inc (SWKS) currently screens with an estimated WACC of 10.36%. That blends a 10.75% cost of equity, a 2.75% pre-tax cost of debt, and a 95.48% 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 SWKS WACC implies

A 10.36% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SWKS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.52 and equity accounts for 95.48% 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.