CMBM
Cambium Networks Corp
Price:  
0.41 
USD
Volume:  
307,057.00
United States | Communications Equipment
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CMBM WACC - Weighted Average Cost of Capital

The WACC of Cambium Networks Corp (CMBM) is 7.9%.

The Cost of Equity of Cambium Networks Corp (CMBM) is 14.90%.
The Cost of Debt of Cambium Networks Corp (CMBM) is 5.95%.

Range Selected
Cost of equity 12.90% - 16.90% 14.90%
Tax rate 15.20% - 19.00% 17.10%
Cost of debt 4.90% - 7.00% 5.95%
WACC 6.8% - 9.0% 7.9%
WACC

CMBM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.96 2.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.90% 16.90%
Tax rate 15.20% 19.00%
Debt/Equity ratio 2.33 2.33
Cost of debt 4.90% 7.00%
After-tax WACC 6.8% 9.0%
Selected WACC 7.9%

CMBM'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 CMBM:

cost_of_equity (14.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.96) + 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.