EVOP
EVO Payments Inc
Price:  
33.99 
USD
Volume:  
2,954,140.00
United States | IT Services
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EVOP WACC - Weighted Average Cost of Capital

The WACC of EVO Payments Inc (EVOP) is 6.7%.

The Cost of Equity of EVO Payments Inc (EVOP) is 7.90%.
The Cost of Debt of EVO Payments Inc (EVOP) is 4.80%.

Range Selected
Cost of equity 6.90% - 8.90% 7.90%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 5.60% 4.80%
WACC 5.8% - 7.5% 6.7%
WACC

EVOP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.66 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 8.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.39 0.39
Cost of debt 4.00% 5.60%
After-tax WACC 5.8% 7.5%
Selected WACC 6.7%

EVOP'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 EVOP:

cost_of_equity (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.66) + 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.