DTRK WACC - Weighted Average Cost of Capital
The WACC of DATATRAK International Inc (DTRK) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 11.9% | 9.45% |
| WACC | 5.4% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 7.0% | 11.9% |
| After-tax WACC | 5.4% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DTRK | DATATRAK International Inc | 0.12 | 4.72 | 4.33 |
| APYI | Aspyra Inc | 0.53 | 0.2 | 0.14 |
| CMPD | CompuMed Inc | 0.05 | 0.33 | 0.32 |
| EKG.V | CardioComm Solutions Inc | 0.25 | 0.83 | 0.7 |
| MITI | Mitesco Inc | 0.43 | -1.06 | -0.81 |
| MLKNA | MedLink International Inc | 0.45 | 1.22 | 0.92 |
| NH | NantHealth Inc | 29.54 | 0.4 | 0.02 |
| NHEL | Natural Health Farm Holdings Inc | 0.09 | 1.27 | 1.19 |
| NMXS | Net Medical Xpress Solutions Inc | 0.53 | 0.78 | 0.56 |
| WORX | Scworx Corp | 0.04 | 2.04 | 1.98 |
| SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
| Low | High | |
| Unlevered beta | 0.32 | 0.7 |
| Relevered beta | 0 | 0.15 |
| Adjusted relevered beta | 0.33 | 0.43 |
DTRK'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 DTRK:
cost_of_equity (6.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.