KBNT WACC - Weighted Average Cost of Capital
The WACC of Kubient Inc (KBNT) is 4.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 10.0% | 7.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.0% - 5.2% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 10.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 53.56 | 53.56 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.0% | 5.2% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KBNT | Kubient Inc | 53.56 | 23.55 | 0.59 |
| ADST | AdStar Inc | 0.01 | 0 | 0 |
| CNFN | Cfn Enterprises Inc | 0.27 | 1.81 | 1.51 |
| DEAL.V | Playgon Games Inc | 2.68 | 0.1 | 0.03 |
| EQ.V | EQ Inc | 0.02 | -0.05 | -0.05 |
| MFON | Mobivity Holdings Corp | 0.36 | 0.06 | 0.04 |
| MYRY | Myriad Interactive Media Inc | 0.4 | 0.98 | 0.75 |
| PROM | Propel Media Inc | 0.28 | -1.53 | -1.27 |
| TPNI | Pulse Network Inc | 3420.46 | 1.28 | 0 |
| WDLF | Social Life Network Inc | 0.08 | -0.77 | -0.72 |
| Low | High | |
| Unlevered beta | 0 | 0.04 |
| Relevered beta | 0.01 | 0.88 |
| Adjusted relevered beta | 0.34 | 0.92 |
KBNT'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 KBNT:
cost_of_equity (7.70%) = 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.