CMTL
Comtech Telecommunications Corp
Price:  
2.87 
USD
Volume:  
88,131.00
United States | Communications Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CMTL WACC - Weighted Average Cost of Capital

The WACC of Comtech Telecommunications Corp (CMTL) is 8.0%.

The Cost of Equity of Comtech Telecommunications Corp (CMTL) is 11.85%.
The Cost of Debt of Comtech Telecommunications Corp (CMTL) is 6.80%.

Range Selected
Cost of equity 9.80% - 13.90% 11.85%
Tax rate 7.30% - 11.50% 9.40%
Cost of debt 6.60% - 7.00% 6.80%
WACC 7.3% - 8.7% 8.0%
WACC

CMTL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.3 1.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.90%
Tax rate 7.30% 11.50%
Debt/Equity ratio 2.07 2.07
Cost of debt 6.60% 7.00%
After-tax WACC 7.3% 8.7%
Selected WACC 8.0%

CMTL'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 CMTL:

cost_of_equity (11.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.3) + 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.