CRSR
Corsair Gaming Inc
Price:  
8.57 
USD
Volume:  
544,761.00
United States | Technology Hardware, Storage & Peripherals
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Corsair WACC - Weighted Average Cost of Capital

The WACC of Corsair Gaming Inc (CRSR) is 10.2%.

The Cost of Equity of Corsair Gaming Inc (CRSR) is 11.25%.
The Cost of Debt of Corsair Gaming Inc (CRSR) is 6.10%.

Range Selected
Cost of equity 9.80% - 12.70% 11.25%
Tax rate 15.40% - 23.30% 19.35%
Cost of debt 5.20% - 7.00% 6.10%
WACC 8.9% - 11.5% 10.2%
WACC

Corsair WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.29 1.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 12.70%
Tax rate 15.40% 23.30%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.20% 7.00%
After-tax WACC 8.9% 11.5%
Selected WACC 10.2%

Corsair'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 Corsair:

cost_of_equity (11.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.29) + 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.