CAMP WACC - Weighted Average Cost of Capital
The WACC of CalAmp Corp (CAMP) is 6.4%.
| Range | Selected | |
| Cost of equity | 175.1% - 570.7% | 372.9% |
| Tax rate | 3.3% - 3.6% | 3.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 8.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 37.23 | 101.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 175.1% | 570.7% |
| Tax rate | 3.3% | 3.6% |
| Debt/Equity ratio | 345.64 | 345.64 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 8.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CAMP | CalAmp Corp | 345.64 | 1.57 | 0 |
| CASA | Casa Systems Inc | 54.32 | 0.4 | 0.01 |
| CMTL | Comtech Telecommunications Corp | 4.02 | 1.25 | 0.26 |
| CRNT | Ceragon Networks Ltd | 0.13 | 0.82 | 0.73 |
| EXF.TO | EXFO Inc | 0.14 | 1.47 | 1.29 |
| HLIT | Harmonic Inc | 0.12 | 1.03 | 0.92 |
| OCC | Optical Cable Corp | 0.45 | 1.2 | 0.83 |
| PCTI | PCTEL Inc | 0 | -0.35 | -0.35 |
| SWIR | Sierra Wireless Inc | 0.01 | 1.3 | 1.29 |
| VCM.TO | Vecima Networks Inc | 0.28 | 0.65 | 0.51 |
| Low | High | |
| Unlevered beta | 0.41 | 0.77 |
| Relevered beta | 55.07 | 150.31 |
| Adjusted relevered beta | 37.23 | 101.04 |
CAMP'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 CAMP:
cost_of_equity (372.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (37.23) + 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.