FULO WACC - Weighted Average Cost of Capital
The WACC of Fullnet Communications Inc (FULO) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 22.9% - 25.3% | 24.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.6% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 22.9% | 25.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.6% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FULO | Fullnet Communications Inc | 1.14 | 0.49 | 0.26 |
| ADYA.V | Adya Inc | 0.88 | -2.1 | -1.26 |
| ALSK | Alaska Communications Systems Group Inc | 0.91 | 1.48 | 0.88 |
| ATNI | ATN International Inc | 2.78 | 0.35 | 0.11 |
| CBB | Cincinnati Bell Inc | 2.5 | 0.36 | 0.13 |
| CVST | Covista Communications Inc | 98.66 | 0 | 0 |
| NTLK | Net Talk.com Inc | 25258.92 | 0 | 0 |
| NUVR | Nuvera Communications Inc | 2.33 | 0.03 | 0.01 |
| SGRB | SigmaBroadband Co | 1.46 | -0.75 | -0.36 |
| UPCO.CN | Upco International Inc | 0.05 | 1.17 | 1.13 |
| VZ | Verizon Communications Inc | 0.78 | 0.26 | 0.16 |
| Low | High | |
| Unlevered beta | 0.01 | 0.13 |
| Relevered beta | 0.01 | 0.21 |
| Adjusted relevered beta | 0.34 | 0.47 |
FULO'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 FULO:
cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.