ANGO
AngioDynamics Inc
Price:  
9.28 
USD
Volume:  
725,364.00
United States | Health Care Equipment & Supplies
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ANGO WACC - Weighted Average Cost of Capital

The WACC of AngioDynamics Inc (ANGO) is 5.8%.

The Cost of Equity of AngioDynamics Inc (ANGO) is 7.55%.
The Cost of Debt of AngioDynamics Inc (ANGO) is 4.25%.

Range Selected
Cost of equity 6.70% - 8.40% 7.55%
Tax rate 3.80% - 6.80% 5.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.3% - 6.3% 5.8%
WACC

ANGO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.61 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.40%
Tax rate 3.80% 6.80%
Debt/Equity ratio 1 1
Cost of debt 4.00% 4.50%
After-tax WACC 5.3% 6.3%
Selected WACC 5.8%

ANGO'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 ANGO:

cost_of_equity (7.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.61) + 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.