CREX
Creative Realities Inc
Price:  
3.13 
USD
Volume:  
197,694.00
United States | Media
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CREX WACC - Weighted Average Cost of Capital

The WACC of Creative Realities Inc (CREX) is 13.2%.

The Cost of Equity of Creative Realities Inc (CREX) is 10.80%.
The Cost of Debt of Creative Realities Inc (CREX) is 16.85%.

Range Selected
Cost of equity 8.90% - 12.70% 10.80%
Tax rate 3.00% - 3.50% 3.25%
Cost of debt 9.80% - 23.90% 16.85%
WACC 9.2% - 17.3% 13.2%
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 1.1 1.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 12.70%
Tax rate 3.00% 3.50%
Debt/Equity ratio 0.79 0.79
Cost of debt 9.80% 23.90%
After-tax WACC 9.2% 17.3%
Selected WACC 13.2%

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 (10.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.