CVR
Chicago Rivet & Machine Co
Price:  
11.97 
USD
Volume:  
3,165.00
United States | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CVR WACC - Weighted Average Cost of Capital

The WACC of Chicago Rivet & Machine Co (CVR) is 5.2%.

The Cost of Equity of Chicago Rivet & Machine Co (CVR) is 6.55%.
The Cost of Debt of Chicago Rivet & Machine Co (CVR) is 5.00%.

Range Selected
Cost of equity 5.40% - 7.70% 6.55%
Tax rate 21.40% - 22.10% 21.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 5.8% 5.2%
WACC

CVR 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 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.70%
Tax rate 21.40% 22.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 5.8%
Selected WACC 5.2%

CVR'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 CVR:

cost_of_equity (6.55%) = 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.