EVBG
Everbridge Inc
Price:  
35.00 
USD
Volume:  
2,315,980.00
United States | Software
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Everbridge WACC - Weighted Average Cost of Capital

The WACC of Everbridge Inc (EVBG) is 7.7%.

The Cost of Equity of Everbridge Inc (EVBG) is 8.25%.
The Cost of Debt of Everbridge Inc (EVBG) is 5.50%.

Range Selected
Cost of equity 6.00% - 10.50% 8.25%
Tax rate 3.20% - 5.70% 4.45%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.5% - 9.8% 7.7%
WACC

Everbridge WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 10.50%
Tax rate 3.20% 5.70%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 7.00%
After-tax WACC 5.5% 9.8%
Selected WACC 7.7%

Everbridge'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 Everbridge:

cost_of_equity (8.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.