IPDN WACC - Weighted Average Cost of Capital
The WACC of Professional Diversity Network, Inc. (IPDN) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.9% | 7.15% |
| Tax rate | 0.5% - 0.8% | 0.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.9% |
| Tax rate | 0.5% | 0.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IPDN | Professional Diversity Network, Inc. | 1.09 | 0.01 | 0 |
| CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.75 |
| EVTI | Eventure Interactive Inc | 643.34 | 0.94 | 0 |
| FDIT | Findit Inc | 0.01 | 1.42 | 1.41 |
| MBO.V | Mobio Technologies Inc | 0.51 | -0.58 | -0.39 |
| MVY.V | Moovly Media Inc | 1.22 | 0.36 | 0.16 |
| MYID.V | Killi Ltd | 0.15 | 1.74 | 1.51 |
| RSS.V | Resaas Services Inc | 0 | 0.81 | 0.81 |
| WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.01 |
| WDDD | Worlds Inc | 1.96 | -2 | -0.68 |
| YOO.V | YANGAROO Inc | 0.6 | 0.77 | 0.48 |
| Low | High | |
| Unlevered beta | 0 | 0.16 |
| Relevered beta | 0.01 | 0.58 |
| Adjusted relevered beta | 0.34 | 0.72 |
IPDN'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 IPDN:
cost_of_equity (7.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.