DISH
DISH Network Corp
Price:  
5.77 
USD
Volume:  
50,816,000.00
United States | Media
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DISH WACC - Weighted Average Cost of Capital

The WACC of DISH Network Corp (DISH) is 10.1%.

The Cost of Equity of DISH Network Corp (DISH) is 11.65%.
The Cost of Debt of DISH Network Corp (DISH) is 13.10%.

Range Selected
Cost of equity 9.70% - 13.60% 11.65%
Tax rate 23.70% - 24.00% 23.85%
Cost of debt 5.30% - 20.90% 13.10%
WACC 4.5% - 15.7% 10.1%
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 1.28 1.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 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 4.5% 15.7%
Selected WACC 10.1%

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 (11.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.28) + 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.