Skip to content

Vicor Corp (VICR) — WACC Analysis

WACC Breakdown

Vicor Corp (VICR) has a weighted average cost of capital (WACC) of 12.1%. The cost of equity is 12.1%, derived from a beta of 1.95 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.0%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 12.1% indicates that the market perceives Vicor Corp as higher-risk, requiring a greater return to compensate investors.

Investors can compare VICR's WACC of 12.1% against industry peers to gauge its relative financing costs. A beta of 1.95 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

VICR WACC: 12.13% for Vicor Corp

Current inputs imply a 12.13% cost of equity and a 5.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Vicor Corp Common Stock (VICR) WACC Results
Weighted Average Cost of Capital
12.13%
Cost of Equity
12.13%
Risk-Free Rate5.22%
Beta1.95
Market Risk Premium4.23%
Cost of Debt
3.95%
Pre-Tax Cost of Debt5.00%
Tax Rate21.00%
Tax Shield1.05%
Capital Structure
Equity: 100.00%($11.96B)
Debt: 0.00%($0.00M)
Equity Component
12.13%
100.00% × 12.13%
Debt Component
0.00%
0.00% × 3.95%

Vicor Corp (VICR) WACC in context

Vicor Corp (VICR) currently screens with an estimated WACC of 12.13%. That blends a 12.13% cost of equity, a 5.00% pre-tax cost of debt, and a 100.00% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What VICR WACC implies

A 12.13% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates VICR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.95 and equity accounts for 100.00% 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.