ALOT WACC - Weighted Average Cost of Capital
The WACC of AstroNova Inc (ALOT) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 14.4% | 11.4% |
| Tax rate | 19.5% - 21.4% | 20.45% |
| Cost of debt | 7.7% - 9.1% | 8.4% |
| WACC | 7.5% - 11.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.98 | 1.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 14.4% |
| Tax rate | 19.5% | 21.4% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 7.7% | 9.1% |
| After-tax WACC | 7.5% | 11.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALOT | AstroNova Inc | 0.66 | 0.69 | 0.45 |
| 1337.HK | Razer Inc | 0.01 | 1.35 | 1.34 |
| IGOI | iGO Inc | 0.92 | 0.89 | 0.51 |
| NTAP | NetApp Inc | 0.15 | 1.53 | 1.36 |
| OSS | One Stop Systems Inc | 0.01 | 1.6 | 1.58 |
| PSTG | Pure Storage Inc | 0.01 | 2.1 | 2.09 |
| SCKT | Socket Mobile Inc | 0.43 | 0.84 | 0.63 |
| STX | Seagate Technology PLC | 0.19 | 1.91 | 1.66 |
| TACT | TransAct Technologies Inc | 0.08 | 0.68 | 0.64 |
| Low | High | |
| Unlevered beta | 0.78 | 1.36 |
| Relevered beta | 0.97 | 2.06 |
| Adjusted relevered beta | 0.98 | 1.71 |
ALOT'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 ALOT:
cost_of_equity (11.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.98) + 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.