ESNR
Electronic Sensor Technology Inc
Price:  
0.00 
USD
Volume:  
76,720.00
United States | Electronic Equipment, Instruments & Components
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ESNR WACC - Weighted Average Cost of Capital

The WACC of Electronic Sensor Technology Inc (ESNR) is 5.8%.

The Cost of Equity of Electronic Sensor Technology Inc (ESNR) is 7,706.60%.
The Cost of Debt of Electronic Sensor Technology Inc (ESNR) is 7.00%.

Range Selected
Cost of equity 18.50% - 15,394.70% 7,706.60%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 5.2% - 6.4% 5.8%
WACC

ESNR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 3.17 2748.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.50% 15,394.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 12277.67 12277.67
Cost of debt 7.00% 7.00%
After-tax WACC 5.2% 6.4%
Selected WACC 5.8%

ESNR'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 ESNR:

cost_of_equity (7,706.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.17) + 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.