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 |
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.