ISD.V WACC - Weighted Average Cost of Capital
The WACC of iSIGN Media Solutions Inc (ISD.V) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.0% | 7.5% |
| Tax rate | 0.3% - 0.8% | 0.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.35 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.0% |
| Tax rate | 0.3% | 0.8% |
| Debt/Equity ratio | 1.62 | 1.62 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ISD.V | iSIGN Media Solutions Inc | 1.62 | 3.9 | 1.49 |
| CNFN | Cfn Enterprises Inc | 0.3 | 1.09 | 0.83 |
| EQ.V | EQ Inc | 0.02 | -0.03 | -0.03 |
| FLYY.CN | Media Central Corporation Inc | 0.26 | -0.24 | -0.19 |
| GSMG | Glory Star New Media Group Holdings Ltd | 0.11 | 0.46 | 0.41 |
| KBNT | Kubient Inc | 5357.51 | 13.55 | 0 |
| MOBO | Mobile Lads Corp | 2.25 | -52.37 | -16.19 |
| MYRY | Myriad Interactive Media Inc | 0.4 | 0.98 | 0.7 |
| Y.TO | Yellow Pages Ltd | 0.25 | 0.51 | 0.4 |
| Low | High | |
| Unlevered beta | 0.08 | 0.41 |
| Relevered beta | 0.03 | 0.45 |
| Adjusted relevered beta | 0.35 | 0.63 |
ISD.V'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 ISD.V:
cost_of_equity (7.50%) = risk_free_rate (4.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.