ARTM WACC - Weighted Average Cost of Capital
The WACC of American Nortel Communications Inc (ARTM) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.0% | 6.2% |
| Tax rate | 24.1% - 40.4% | 32.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.0% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.0% |
| Tax rate | 24.1% | 40.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.0% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARTM | American Nortel Communications Inc | 1.13 | -0.28 | -0.17 |
| BXV.CN | Bexar Ventures Inc | 0.06 | 0.95 | 0.92 |
| HADV | Health Advance Inc | 0.62 | -1.42 | -1.04 |
| IMTV | Imagine All The People Inc | 91.3 | 0 | 0 |
| LRDG | Lord Global Corp | 1977.61 | 0 | 0 |
| RAD.CN | Radial Research Corp | 1.76 | -1.85 | -0.9 |
| RGMP | Regnum Corp | 11.52 | 0.71 | 0.09 |
| WRIT | WRIT Media Group Inc | 0.55 | 0.77 | 0.58 |
| Low | High | |
| Unlevered beta | -0.03 | 0.02 |
| Relevered beta | 0 | 0.09 |
| Adjusted relevered beta | 0.33 | 0.39 |
ARTM'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 ARTM:
cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.