DISH WACC - Weighted Average Cost of Capital
The WACC of DISH Network Corp (DISH) is 10.7%.
| Range | Selected | |
| Cost of equity | 9.6% - 30.2% | 19.9% |
| Tax rate | 23.7% - 24.0% | 23.85% |
| Cost of debt | 5.3% - 20.9% | 13.1% |
| WACC | 4.5% - 16.9% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.24 | 4.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 30.2% |
| Tax rate | 23.7% | 24.0% |
| Debt/Equity ratio | 12.5 | 12.5 |
| Cost of debt | 5.3% | 20.9% |
| After-tax WACC | 4.5% | 16.9% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DISH | DISH Network Corp | 12.5 | 1.36 | 0.13 |
| ATUS | Altice USA Inc | 25.15 | 0.53 | 0.03 |
| CCA.TO | Cogeco Communications Inc | 1.65 | 0.29 | 0.13 |
| CGO.TO | Cogeco Inc | 7.92 | 0.41 | 0.06 |
| DISCA | Discovery Inc | 1.21 | 1.13 | 0.59 |
| LBRDA | Liberty Broadband Corp | 0.29 | 0.83 | 0.68 |
| MDP | Meredith Corp | 1.02 | 2.06 | 1.16 |
| NWSA | News Corp | 0.17 | 0.8 | 0.71 |
| QBR.B.TO | Quebecor Inc | 0.85 | -0.23 | -0.14 |
| SIRI | Sirius XM Holdings Inc | 1.36 | 1.23 | 0.6 |
| Low | High | |
| Unlevered beta | 0.13 | 0.59 |
| Relevered beta | 1.36 | 6.25 |
| Adjusted relevered beta | 1.24 | 4.52 |
DISH'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 DISH:
cost_of_equity (19.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.24) + 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.