GTYH
Gty Technology Holdings Inc
Price:  
6.3 
USD
Volume:  
1,093,450
United States | Software

GTYH WACC - Weighted Average Cost of Capital

The WACC of Gty Technology Holdings Inc (GTYH) is 6.8%.

The Cost of Equity of Gty Technology Holdings Inc (GTYH) is 6.85%.
The Cost of Debt of Gty Technology Holdings Inc (GTYH) is 7%.

RangeSelected
Cost of equity5.4% - 8.3%6.85%
Tax rate1.0% - 3.1%2.05%
Cost of debt7.0% - 7.0%7%
WACC5.5% - 8.2%6.8%
WACC

GTYH WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.530.78
Additional risk adjustments0.0%0.5%
Cost of equity5.4%8.3%
Tax rate1.0%3.1%
Debt/Equity ratio
0.070.07
Cost of debt7.0%7.0%
After-tax WACC5.5%8.2%
Selected WACC6.8%

GTYH'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 GTYH:

cost_of_equity (6.85%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.53) + 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.