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Viomi Technology Co., Ltd American Depositary Shares (VIOT) — WACC Analysis

WACC Breakdown

Viomi Technology Co., Ltd American Depositary Shares (VIOT) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 8.8%, derived from a beta of 0.97 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.2%. The capital structure is 80.5% equity and 19.5% debt.

Interpretation

A WACC of 7.5% suggests that the market views Viomi Technology Co., Ltd American Depositary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare VIOT's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 0.97 reflects the stock's volatility relative to the broader market.

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VALUATION

VIOT WACC: 7.52% for Viomi Technology Co., Ltd American Depositary Shares

Current inputs imply a 8.82% cost of equity and a 2.76% 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

Viomi Technology Co., Ltd American Depositary Shares Common Stock (VIOT) WACC Results
Weighted Average Cost of Capital
7.52%
Cost of Equity
8.82%
Risk-Free Rate4.67%
Beta0.97
Market Risk Premium4.23%
Cost of Debt
2.18%
Pre-Tax Cost of Debt2.76%
Tax Rate21.00%
Tax Shield0.58%
Capital Structure
Equity: 80.51%($54.07M)
Debt: 19.49%($13.09M)
Equity Component
7.10%
80.51% × 8.82%
Debt Component
0.42%
19.49% × 2.18%

Viomi Technology Co., Ltd American Depositary Shares (VIOT) WACC in context

Viomi Technology Co., Ltd American Depositary Shares (VIOT) currently screens with an estimated WACC of 7.52%. That blends a 8.82% cost of equity, a 2.76% pre-tax cost of debt, and a 80.51% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What VIOT WACC implies

A 7.52% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates VIOT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.97 and equity accounts for 80.51% 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.