CREX
Creative Realities Inc
Price:  
1.73 
USD
Volume:  
24,413.00
United States | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CREX WACC - Weighted Average Cost of Capital

The WACC of Creative Realities Inc (CREX) is 7.8%.

The Cost of Equity of Creative Realities Inc (CREX) is 6.05%.
The Cost of Debt of Creative Realities Inc (CREX) is 9.45%.

Range Selected
Cost of equity 5.40% - 6.70% 6.05%
Tax rate 3.00% - 3.50% 3.25%
Cost of debt 9.10% - 9.80% 9.45%
WACC 7.3% - 8.3% 7.8%
WACC

CREX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 6.70%
Tax rate 3.00% 3.50%
Debt/Equity ratio 1.34 1.34
Cost of debt 9.10% 9.80%
After-tax WACC 7.3% 8.3%
Selected WACC 7.8%

CREX'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 CREX:

cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.