APLD
Applied Science Products Inc
Price:  
5.21 
USD
Volume:  
24,420,860.00
United States | Machinery
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APLD WACC - Weighted Average Cost of Capital

The WACC of Applied Science Products Inc (APLD) is 6.8%.

The Cost of Equity of Applied Science Products Inc (APLD) is 6.50%.
The Cost of Debt of Applied Science Products Inc (APLD) is 8.20%.

Range Selected
Cost of equity 5.50% - 7.50% 6.50%
Tax rate -% - 0.50% 0.25%
Cost of debt 7.00% - 9.40% 8.20%
WACC 5.8% - 7.8% 6.8%
WACC

APLD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.35 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.50%
Tax rate -% 0.50%
Debt/Equity ratio 0.25 0.25
Cost of debt 7.00% 9.40%
After-tax WACC 5.8% 7.8%
Selected WACC 6.8%

APLD'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 APLD:

cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.