AWRE WACC - Weighted Average Cost of Capital
The WACC of Aware Inc (AWRE) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.9% | 6.65% |
| Tax rate | 2.3% - 3.6% | 2.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.4% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.9% |
| Tax rate | 2.3% | 3.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.4% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AWRE | Aware Inc | 0.85 | 0.36 | 0.2 |
| AXE.V | Acceleware Ltd | 0.25 | -1.13 | -0.9 |
| INTV | Integrated Ventures Inc | 0.24 | -0.05 | -0.04 |
| IOTC | Iota Communications Inc | 202.21 | -0.75 | 0 |
| ISDR | Issuer Direct Corp | 0.54 | 0.96 | 0.63 |
| MFH | Mercurity Fintech Holding Inc | 0.03 | 1.2 | 1.17 |
| MVP.V | MediaValet Inc | 0.03 | 0.58 | 0.56 |
| PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
| TEUM | Pareteum Corp | 206.35 | 0.8 | 0 |
| VENZ.V | Venzee Technologies Inc | 0.3 | 0.25 | 0.19 |
| VSBY.CN | VSBLTY Groupe Technologies Corp | 0.26 | -0.98 | -0.78 |
| Low | High | |
| Unlevered beta | 0 | 0.19 |
| Relevered beta | 0 | 0.33 |
| Adjusted relevered beta | 0.33 | 0.55 |
AWRE'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 AWRE:
cost_of_equity (6.65%) = 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.