EKCS
Electronic Control Security Inc
Price:  
0.00 
USD
Volume:  
8,040.00
United States | Electronic Equipment, Instruments & Components
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EKCS WACC - Weighted Average Cost of Capital

The WACC of Electronic Control Security Inc (EKCS) is 10.7%.

The Cost of Equity of Electronic Control Security Inc (EKCS) is 6.45%.
The Cost of Debt of Electronic Control Security Inc (EKCS) is 11.85%.

Range Selected
Cost of equity 5.40% - 7.50% 6.45%
Tax rate 4.40% - 9.70% 7.05%
Cost of debt 7.00% - 16.70% 11.85%
WACC 6.6% - 14.7% 10.7%
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 0.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.50%
Tax rate 4.40% 9.70%
Debt/Equity ratio 22.25 22.25
Cost of debt 7.00% 16.70%
After-tax WACC 6.6% 14.7%
Selected WACC 10.7%

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 (6.45%) = 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.