GAEX
GA Express Inc
Price:  
0.00 
USD
Volume:  
9,280.00
United States | Software
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GAEX WACC - Weighted Average Cost of Capital

The WACC of GA Express Inc (GAEX) is 6.4%.

The Cost of Equity of GA Express Inc (GAEX) is 888,247.45%.
The Cost of Debt of GA Express Inc (GAEX) is 4.25%.

Range Selected
Cost of equity 313,487.30% - 1,463,007.60% 888,247.45%
Tax rate 2.00% - 21.50% 11.75%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.8% - 7.9% 6.4%
WACC

GAEX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 68148.57 261250.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 313,487.30% 1,463,007.60%
Tax rate 2.00% 21.50%
Debt/Equity ratio 336917.56 336917.56
Cost of debt 4.00% 4.50%
After-tax WACC 4.8% 7.9%
Selected WACC 6.4%

GAEX'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 GAEX:

cost_of_equity (888,247.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (68148.57) + 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.