COMS WACC - Weighted Average Cost of Capital
The WACC of COMSovereign Holding Corp (COMS) is 5.6%.
| Range | Selected | |
| Cost of equity | 2863.9% - 12594.2% | 7729.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.5% - 7.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 621.76 | 2248.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 2863.9% | 12594.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 5020.33 | 5020.33 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.5% | 7.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| COMS | COMSovereign Holding Corp | 5020.33 | -22.28 | -0.01 |
| AERG | Applied Energetics Inc | 0 | 0.17 | 0.17 |
| ASTC | Astrotech Corp | 0.02 | 0.31 | 0.31 |
| AZ.V | A2Z Smart Technologies Corp | 0.06 | 1.33 | 1.27 |
| EH | Ehang Holdings Ltd | 0.01 | 1.43 | 1.42 |
| FLY.V | FLYHT Aerospace Solutions Ltd | 0.52 | -0.76 | -0.55 |
| GSPT | Golden Star Enterprises Ltd | 12.19 | 0.24 | 0.02 |
| ISSC | Innovative Solutions and Support Inc | 0.17 | 1.12 | 1 |
| MRS.V | Mission Ready Solutions Inc | 1.29 | 1.89 | 0.97 |
| PAT.TO | Patriot One Technologies Inc | 0.01 | 0.88 | 0.88 |
| ROV.CO | Rovsing A/S | 0.35 | -0.07 | -0.06 |
| Low | High | |
| Unlevered beta | 0.17 | 0.88 |
| Relevered beta | 927.51 | 3354.87 |
| Adjusted relevered beta | 621.76 | 2248.09 |
COMS'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 COMS:
cost_of_equity (7,729.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (621.76) + 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.