BWEN
Broadwind Inc
Price:  
1.54 
USD
Volume:  
57,160.00
United States | Electrical Equipment
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BWEN WACC - Weighted Average Cost of Capital

The WACC of Broadwind Inc (BWEN) is 7.8%.

The Cost of Equity of Broadwind Inc (BWEN) is 8.40%.
The Cost of Debt of Broadwind Inc (BWEN) is 8.85%.

Range Selected
Cost of equity 7.30% - 9.50% 8.40%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 10.70% 8.85%
WACC 6.7% - 9.0% 7.8%
WACC

BWEN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.75 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.44 0.44
Cost of debt 7.00% 10.70%
After-tax WACC 6.7% 9.0%
Selected WACC 7.8%

BWEN'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 BWEN:

cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.75) + 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.