GNRD WACC - Weighted Average Cost of Capital
The WACC of General Datacomm Industries Inc (GNRD) is 5.4%.
| Range | Selected | |
| Cost of equity | 3.9% - 41554.7% | 20779.3% |
| Tax rate | 3.9% - 11.2% | 7.55% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.8% - 6.9% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -1473.58 | 6209.16 |
| Additional risk adjustments | 6778.5% | 6779.0% |
| Cost of equity | 3.9% | 41554.7% |
| Tax rate | 3.9% | 11.2% |
| Debt/Equity ratio | 64716.02 | 64716.02 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.8% | 6.9% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GNRD | General Datacomm Industries Inc | 64716.02 | 20.65 | 0 |
| ATVK | Ameritek Ventures | 1.11 | -1.46 | -0.71 |
| BDR | Blonder Tongue Laboratories Inc | 0.99 | 0.65 | 0.33 |
| INVT | Inventergy Global Inc | 42.47 | 1.23 | 0.03 |
| LTE.V | Lite Access Technologies Inc | 0.08 | -0.1 | -0.09 |
| PRKR | ParkerVision Inc | 0.94 | 0.7 | 0.37 |
| VTI.V | Valdor Technology International Inc | 0.08 | -0.14 | -0.13 |
| YFI.V | Edgewater Wireless Systems Inc | 0.02 | -0.46 | -0.45 |
| YTY.V | Wi2wi Corp | 2.04 | 0.99 | 0.34 |
| Low | High | |
| Unlevered beta | -0.07 | 0.02 |
| Relevered beta | -2199.87 | 9266.91 |
| Adjusted relevered beta | -1473.58 | 6209.16 |
GNRD'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 GNRD:
cost_of_equity (20,779.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-1473.58) + risk_adjustments (6,778.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.