EEX
Emerald Holding Inc
Price:  
4.66 
USD
Volume:  
108,804.00
United States | Media
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EEX WACC - Weighted Average Cost of Capital

The WACC of Emerald Holding Inc (EEX) is 6.6%.

The Cost of Equity of Emerald Holding Inc (EEX) is 7.00%.
The Cost of Debt of Emerald Holding Inc (EEX) is 7.95%.

Range Selected
Cost of equity 6.10% - 7.90% 7.00%
Tax rate 13.70% - 38.60% 26.15%
Cost of debt 6.80% - 9.10% 7.95%
WACC 6.0% - 7.2% 6.6%
WACC

EEX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 7.90%
Tax rate 13.70% 38.60%
Debt/Equity ratio 0.44 0.44
Cost of debt 6.80% 9.10%
After-tax WACC 6.0% 7.2%
Selected WACC 6.6%

EEX'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 EEX:

cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.