AKOM
Aerkomm Inc
Price:  
0.02 
USD
Volume:  
140
United States | Wireless Telecommunication Services

AKOM WACC - Weighted Average Cost of Capital

The WACC of Aerkomm Inc (AKOM) is 5.5%.

The Cost of Equity of Aerkomm Inc (AKOM) is 15.15%.
The Cost of Debt of Aerkomm Inc (AKOM) is 7.35%.

RangeSelected
Cost of equity6.3% - 24.0%15.15%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 7.7%7.35%
WACC5.2% - 5.8%5.5%
WACC

AKOM WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.523.41
Additional risk adjustments0.0%0.5%
Cost of equity6.3%24.0%
Tax rate26.2%27.0%
Debt/Equity ratio
107.38107.38
Cost of debt7.0%7.7%
After-tax WACC5.2%5.8%
Selected WACC5.5%

AKOM's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for AKOM:

cost_of_equity (15.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.52) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.