ESNC
EnSync Inc
Price:  
USD
Volume:  
1,470
United States | Electrical Equipment

ESNC WACC - Weighted Average Cost of Capital

The WACC of EnSync Inc (ESNC) is 5.7%.

The Cost of Equity of EnSync Inc (ESNC) is 16.1%.
The Cost of Debt of EnSync Inc (ESNC) is 5.5%.

RangeSelected
Cost of equity5.4% - 26.8%16.1%
Tax rate0.0% - 0.3%0.15%
Cost of debt4.0% - 7.0%5.5%
WACC4.0% - 7.4%5.7%
WACC

ESNC WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.333.91
Additional risk adjustments0.0%0.5%
Cost of equity5.4%26.8%
Tax rate0.0%0.3%
Debt/Equity ratio
48.7348.73
Cost of debt4.0%7.0%
After-tax WACC4.0%7.4%
Selected WACC5.7%

ESNC'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 ESNC:

cost_of_equity (16.10%) = 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.