CLSK WACC - Weighted Average Cost of Capital
The WACC of CleanSpark Inc (CLSK) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.0% | 7.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 43.3% | 25.15% |
| WACC | 6.5% - 9.5% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.57 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 43.3% |
| After-tax WACC | 6.5% | 9.5% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLSK | CleanSpark Inc | 0.02 | 1.94 | 1.91 |
| AVYA | Avaya Holdings Corp | 118.74 | 1.41 | 0.02 |
| BDGY | Bridgeway National Corp. | 2254.16 | -0.73 | 0 |
| IDCC | InterDigital Inc | 0.08 | 0.75 | 0.71 |
| IDEX | Ideanomics Inc | 406.14 | 0.04 | 0 |
| INTU | Intuit Inc | 0.03 | 0.59 | 0.58 |
| INVU | Investview Inc | 0.03 | -0.65 | -0.64 |
| MODN | Model N Inc | 0.24 | 0.72 | 0.61 |
| MTC | MMTEC Inc | 1.24 | 1.95 | 1.03 |
| SSNC | SS&C Technologies Holdings Inc | 0.35 | 0.73 | 0.58 |
| Low | High | |
| Unlevered beta | 0.36 | 0.6 |
| Relevered beta | 0.36 | 0.61 |
| Adjusted relevered beta | 0.57 | 0.74 |
CLSK'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 CLSK:
cost_of_equity (7.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.