EKCS WACC - Weighted Average Cost of Capital

The WACC of Electronic Control Security Inc (EKCS) is 10.9%.

The Cost of Equity of Electronic Control Security Inc (EKCS) is 385.50%.

The Cost of Debt of Electronic Control Security Inc (EKCS) is 11.85%.

	Range	Selected
Cost of equity	5.40% - 765.60%	385.50%
Tax rate	4.40% - 9.70%	7.05%
Cost of debt	7.00% - 16.70%	11.85%
WACC	6.7% - 15.1%	10.9%

WACC

EKCS WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.33	135.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	765.60%

Tax rate	4.40%	9.70%
Debt/Equity ratio	17799.47	17799.47
Cost of debt	7.00%	16.70%

After-tax WACC	6.7%	15.1%


Selected WACC	10.9%

EKCS'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 EKCS:

cost_of_equity (385.50%) = 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.