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Viavi Solutions Inc. Common Stock (VIAV) — WACC Analysis

WACC Breakdown

Viavi Solutions Inc. Common Stock (VIAV) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 9.7%, derived from a beta of 1.14 and a risk-free rate of 5.0%. The after-tax cost of debt is 15.3%. The capital structure is 97.1% equity and 2.9% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Viavi Solutions Inc. Common Stock.

Investors can compare VIAV's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.14 reflects the stock's volatility relative to the broader market.

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VALUATION

VIAV WACC: 9.84% for Viavi Solutions Inc. Common Stock

Current inputs imply a 9.67% cost of equity and a 19.36% 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

Viavi Solutions Inc. Common Stock Common Stock (VIAV) WACC Results
Weighted Average Cost of Capital
9.84%
Cost of Equity
9.67%
Risk-Free Rate5.05%
Beta1.14
Market Risk Premium4.23%
Cost of Debt
15.30%
Pre-Tax Cost of Debt19.36%
Tax Rate21.00%
Tax Shield4.07%
Capital Structure
Equity: 97.10%($8194.13M)
Debt: 2.90%($244.80M)
Equity Component
9.39%
97.10% × 9.67%
Debt Component
0.44%
2.90% × 15.30%

Viavi Solutions Inc. Common Stock (VIAV) WACC in context

Viavi Solutions Inc. Common Stock (VIAV) currently screens with an estimated WACC of 9.84%. That blends a 9.67% cost of equity, a 19.36% pre-tax cost of debt, and a 97.10% 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 VIAV WACC implies

A 9.84% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates VIAV

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.14 and equity accounts for 97.10% 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.