BDR
Blonder Tongue Laboratories Inc
Price:  
0.31 
USD
Volume:  
190,324.00
United States | Communications Equipment
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BDR WACC - Weighted Average Cost of Capital

The WACC of Blonder Tongue Laboratories Inc (BDR) is 7.6%.

The Cost of Equity of Blonder Tongue Laboratories Inc (BDR) is 9.55%.
The Cost of Debt of Blonder Tongue Laboratories Inc (BDR) is 5.95%.

Range Selected
Cost of equity 8.00% - 11.10% 9.55%
Tax rate 3.90% - 7.40% 5.65%
Cost of debt 4.90% - 7.00% 5.95%
WACC 6.3% - 8.8% 7.6%
WACC

BDR WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.14 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 11.10%
Tax rate 3.90% 7.40%
Debt/Equity ratio 0.99 0.99
Cost of debt 4.90% 7.00%
After-tax WACC 6.3% 8.8%
Selected WACC 7.6%

BDR'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 BDR:

cost_of_equity (9.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.14) + 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.