FLNT
Fluent Inc
Price:  
2.31 
USD
Volume:  
12,630.00
United States | Media
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Fluent WACC - Weighted Average Cost of Capital

The WACC of Fluent Inc (FLNT) is 8.8%.

The Cost of Equity of Fluent Inc (FLNT) is 10.30%.
The Cost of Debt of Fluent Inc (FLNT) is 6.90%.

Range Selected
Cost of equity 8.10% - 12.50% 10.30%
Tax rate 2.10% - 3.80% 2.95%
Cost of debt 6.80% - 7.00% 6.90%
WACC 7.5% - 10.1% 8.8%
WACC

Fluent WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.92 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 12.50%
Tax rate 2.10% 3.80%
Debt/Equity ratio 0.71 0.71
Cost of debt 6.80% 7.00%
After-tax WACC 7.5% 10.1%
Selected WACC 8.8%

Fluent'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 Fluent:

cost_of_equity (10.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.92) + 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.