KODK
Eastman Kodak Co
Price:  
6.51 
USD
Volume:  
1,071,850.00
United States | Technology Hardware, Storage & Peripherals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

KODK WACC - Weighted Average Cost of Capital

The WACC of Eastman Kodak Co (KODK) is 12.9%.

The Cost of Equity of Eastman Kodak Co (KODK) is 13.20%.
The Cost of Debt of Eastman Kodak Co (KODK) is 14.75%.

Range Selected
Cost of equity 11.10% - 15.30% 13.20%
Tax rate 14.10% - 15.00% 14.55%
Cost of debt 5.10% - 24.40% 14.75%
WACC 7.6% - 18.1% 12.9%
WACC

KODK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.58 1.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 15.30%
Tax rate 14.10% 15.00%
Debt/Equity ratio 1.07 1.07
Cost of debt 5.10% 24.40%
After-tax WACC 7.6% 18.1%
Selected WACC 12.9%

KODK'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 KODK:

cost_of_equity (13.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.58) + 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.