CNRD
Conrad Industries Inc
Price:  
17.50 
USD
Volume:  
7,060.00
United States | Machinery
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CNRD WACC - Weighted Average Cost of Capital

The WACC of Conrad Industries Inc (CNRD) is 9.9%.

The Cost of Equity of Conrad Industries Inc (CNRD) is 10.00%.
The Cost of Debt of Conrad Industries Inc (CNRD) is 4.25%.

Range Selected
Cost of equity 8.70% - 11.30% 10.00%
Tax rate 34.70% - 35.40% 35.05%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.6% - 11.1% 9.9%
WACC

CNRD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.04 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.30%
Tax rate 34.70% 35.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 8.6% 11.1%
Selected WACC 9.9%

CNRD'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 CNRD:

cost_of_equity (10.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.04) + 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.