ATUS
Altice USA Inc
Price:  
2.53 
USD
Volume:  
3,310,106.00
United States | Media
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Altice WACC - Weighted Average Cost of Capital

The WACC of Altice USA Inc (ATUS) is 8.6%.

The Cost of Equity of Altice USA Inc (ATUS) is 28.85%.
The Cost of Debt of Altice USA Inc (ATUS) is 10.50%.

Range Selected
Cost of equity 13.10% - 44.60% 28.85%
Tax rate 23.40% - 27.70% 25.55%
Cost of debt 5.40% - 15.60% 10.50%
WACC 4.5% - 12.8% 8.6%
WACC

Altice WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2 7.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.10% 44.60%
Tax rate 23.40% 27.70%
Debt/Equity ratio 21.69 21.69
Cost of debt 5.40% 15.60%
After-tax WACC 4.5% 12.8%
Selected WACC 8.6%

Altice'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 Altice:

cost_of_equity (28.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2) + 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.