DISH WACC - Weighted Average Cost of Capital
The WACC of DISH Network Corp (DISH) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.7% - 13.3% | 11% |
| Tax rate | 23.7% - 24.0% | 23.85% |
| Cost of debt | 5.3% - 20.9% | 13.1% |
| WACC | 4.4% - 15.7% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.05 | 1.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 13.3% |
| Tax rate | 23.7% | 24.0% |
| Debt/Equity ratio | 12.5 | 12.5 |
| Cost of debt | 5.3% | 20.9% |
| After-tax WACC | 4.4% | 15.7% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DISH | DISH Network Corp | 12.5 | 1.36 | 0.13 |
| ATUS | Altice USA Inc | 20.77 | 0.59 | 0.04 |
| CABO | Cable One Inc | 5.14 | 0.18 | 0.04 |
| CCA.TO | Cogeco Communications Inc | 1.58 | 0.33 | 0.15 |
| CGO.TO | Cogeco Inc | 7.48 | 0.42 | 0.06 |
| LBRDA | Liberty Broadband Corp | 0.3 | 0.86 | 0.7 |
| MSGN | MSG Networks Inc | 1.34 | 1.15 | 0.57 |
| QBR.B.TO | Quebecor Inc | 0.85 | -0.24 | -0.14 |
| SIRI | Sirius XM Holdings Inc | 1.27 | 1.11 | 0.56 |
| WOW | WideOpenWest Inc | 3.01 | 0.64 | 0.19 |
| Low | High | |
| Unlevered beta | 0.1 | 0.17 |
| Relevered beta | 1.07 | 1.76 |
| Adjusted relevered beta | 1.05 | 1.51 |
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 (11.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.05) + 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.