ALOT
AstroNova Inc
Price:  
8.67 
USD
Volume:  
22,224.00
United States | Technology Hardware, Storage & Peripherals
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ALOT WACC - Weighted Average Cost of Capital

The WACC of AstroNova Inc (ALOT) is 9.4%.

The Cost of Equity of AstroNova Inc (ALOT) is 11.95%.
The Cost of Debt of AstroNova Inc (ALOT) is 7.60%.

Range Selected
Cost of equity 9.00% - 14.90% 11.95%
Tax rate 19.50% - 21.40% 20.45%
Cost of debt 7.50% - 7.70% 7.60%
WACC 7.7% - 11.1% 9.4%
WACC

ALOT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.12 1.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 14.90%
Tax rate 19.50% 21.40%
Debt/Equity ratio 0.76 0.76
Cost of debt 7.50% 7.70%
After-tax WACC 7.7% 11.1%
Selected WACC 9.4%

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 (11.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.