Question 1

What is Applied Optoelectronics, Inc.'s WACC?

Accepted Answer

Applied Optoelectronics, Inc. (AAOI) has a Weighted Average Cost of Capital (WACC) of 12.33%. This is calculated using a Cost of Equity of 12.30% (via CAPM with a beta of 2.35) and a pre-tax Cost of Debt of 25.58%, with an equity weight of 99.77% in the capital structure.

Question 2

Is Applied Optoelectronics, Inc.'s WACC high or low?

Accepted Answer

Applied Optoelectronics, Inc.'s WACC of 12.33% is above the typical range, indicating higher perceived risk and cost of capital. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Applied Optoelectronics, Inc.'s WACC calculated?

Accepted Answer

Applied Optoelectronics, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 12.30% is derived from the CAPM model using a beta of 2.35. The pre-tax Cost of Debt (Rd) is 25.58%. The capital structure is 99.77% equity and 0.23% debt.

Applied Optoelectronics, Inc. (AAOI) — WACC 分析

WACC 构成

解读

Applied Optoelectronics, Inc.（AAOI）WACC：12.33%

WACC计算器

Applied Optoelectronics, Inc.（AAOI） WACC 解读

AAOI 公司分析

AAOI DCF 估值

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