ATEC
Alphatec Holdings Inc
Price:  
12.43 
USD
Volume:  
1,783,897.00
United States | Health Care Equipment & Supplies
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ATEC WACC - Weighted Average Cost of Capital

The WACC of Alphatec Holdings Inc (ATEC) is 8.1%.

The Cost of Equity of Alphatec Holdings Inc (ATEC) is 8.70%.
The Cost of Debt of Alphatec Holdings Inc (ATEC) is 6.20%.

Range Selected
Cost of equity 6.80% - 10.60% 8.70%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 5.40% - 7.00% 6.20%
WACC 6.5% - 9.7% 8.1%
WACC

ATEC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.64 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.60%
Tax rate 0.10% 0.10%
Debt/Equity ratio 0.32 0.32
Cost of debt 5.40% 7.00%
After-tax WACC 6.5% 9.7%
Selected WACC 8.1%

ATEC'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 ATEC:

cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.64) + 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.