LTEC WACC - Weighted Average Cost of Capital
The WACC of LOUD Technologies Inc (LTEC) is 19.1%.
| Range | Selected | |
| Cost of equity | 274531.6% - 470948.2% | 372739.9% |
| Tax rate | 4.2% - 5.7% | 4.95% |
| Cost of debt | 12.7% - 23.9% | 18.3% |
| WACC | 13.5% - 24.8% | 19.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 59679.95 | 84097.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 274531.6% | 470948.2% |
| Tax rate | 4.2% | 5.7% |
| Debt/Equity ratio | 209209.88 | 209209.88 |
| Cost of debt | 12.7% | 23.9% |
| After-tax WACC | 13.5% | 24.8% |
| Selected WACC | 19.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LTEC | LOUD Technologies Inc | 209209.88 | 283.8 | 0 |
| DBO.TO | D-Box Technologies Inc | 0.07 | 0 | 0 |
| GPRO | GoPro Inc | 0.96 | 1.96 | 1.02 |
| GTXO | GTX Corp | 0.6 | 1.22 | 0.78 |
| LBAS | Location Based Technologies Inc | 6.66 | -1.38 | -0.19 |
| MCCK | Mestek Inc | 0.05 | 0.36 | 0.34 |
| MCZAF | Mad Catz Interactive Inc | 221777.6 | 0 | 0 |
| SMDM | Singing Machine Company Inc | 0.15 | 0.63 | 0.55 |
| UEIC | Universal Electronics Inc | 0.44 | 1.33 | 0.94 |
| VIOT | Viomi Technology Co Ltd | 0.41 | 1.04 | 0.75 |
| PWS.MI | Powersoft SpA | 0.02 | 0.53 | 0.52 |
| Low | High | |
| Unlevered beta | 0.34 | 0.55 |
| Relevered beta | 89074.06 | 125517.45 |
| Adjusted relevered beta | 59679.95 | 84097.02 |
LTEC'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 LTEC:
cost_of_equity (372,739.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (59679.95) + 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.