DISH WACC - Weighted Average Cost of Capital

The WACC of DISH Network Corp (DISH) is 10.0%.

The Cost of Equity of DISH Network Corp (DISH) is 11.10%.

The Cost of Debt of DISH Network Corp (DISH) is 13.10%.

	Range	Selected
Cost of equity	8.60% - 13.60%	11.10%
Tax rate	23.70% - 24.00%	23.85%
Cost of debt	5.30% - 20.90%	13.10%
WACC	4.4% - 15.7%	10.0%

WACC

DISH WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.04	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	13.60%

Tax rate	23.70%	24.00%
Debt/Equity ratio	12.5	12.5
Cost of debt	5.30%	20.90%

After-tax WACC	4.4%	15.7%


Selected WACC	10.0%

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 (11.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.04) + 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.