HAUP
Hauppauge Digital Inc
Price:  
0.01 
USD
Volume:  
5,730.00
United States | Technology Hardware, Storage & Peripherals
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HAUP WACC - Weighted Average Cost of Capital

The WACC of Hauppauge Digital Inc (HAUP) is 7.4%.

The Cost of Equity of Hauppauge Digital Inc (HAUP) is 10.65%.
The Cost of Debt of Hauppauge Digital Inc (HAUP) is 5.00%.

Range Selected
Cost of equity 7.80% - 13.50% 10.65%
Tax rate 11.80% - 19.30% 15.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 8.8% 7.4%
WACC

HAUP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.85 1.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 13.50%
Tax rate 11.80% 19.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 8.8%
Selected WACC 7.4%

HAUP'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 HAUP:

cost_of_equity (10.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.85) + 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.