ALRM
Alarm.com Holdings Inc
Price:  
54.75 
USD
Volume:  
825,919.00
United States | Software
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Alarm.com WACC - Weighted Average Cost of Capital

The WACC of Alarm.com Holdings Inc (ALRM) is 7.8%.

The Cost of Equity of Alarm.com Holdings Inc (ALRM) is 8.40%.
The Cost of Debt of Alarm.com Holdings Inc (ALRM) is 4.25%.

Range Selected
Cost of equity 7.20% - 9.60% 8.40%
Tax rate 7.50% - 10.10% 8.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.7% - 8.8% 7.8%
WACC

Alarm.com WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.73 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.60%
Tax rate 7.50% 10.10%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 4.50%
After-tax WACC 6.7% 8.8%
Selected WACC 7.8%