GNAL
Generation Alpha Inc
Price:  
0.00 
USD
Volume:  
4,480.00
United States | Electrical Equipment
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GNAL WACC - Weighted Average Cost of Capital

The WACC of Generation Alpha Inc (GNAL) is 5.5%.

The Cost of Equity of Generation Alpha Inc (GNAL) is 7.05%.
The Cost of Debt of Generation Alpha Inc (GNAL) is 5.50%.

Range Selected
Cost of equity 5.10% - 9.00% 7.05%
Tax rate -% - -% -%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.0% - 7.0% 5.5%
WACC

GNAL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.26 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 9.00%
Tax rate -% -%
Debt/Equity ratio 529.78 529.78
Cost of debt 4.00% 7.00%
After-tax WACC 4.0% 7.0%
Selected WACC 5.5%

GNAL'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 GNAL:

cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.26) + 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.