Power Integrations Inc (POWI) WACC Analysis

As of April 4, 2026, Power Integrations Inc (POWI) carries a Weighted Average Cost of Capital (WACC) of 8.4%. WACC reflects the blended rate Power Integrations Inc must pay to both equity and debt holders.

Within that, the cost of equity is 10.6%, the cost of debt is 5.0%, and the effective tax rate is 6.1%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.46 – 1.56
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 8.4%, Power Integrations Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.