MARK
Remark Holdings Inc
Price:  
0.42 
USD
Volume:  
4,571,698
United States | Internet & Direct Marketing Retail

MARK WACC - Weighted Average Cost of Capital

The WACC of Remark Holdings Inc (MARK) is 9.6%.

The Cost of Equity of Remark Holdings Inc (MARK) is 9.8%.
The Cost of Debt of Remark Holdings Inc (MARK) is 13.05%.

RangeSelected
Cost of equity6.4% - 13.2%9.8%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 19.1%13.05%
WACC5.3% - 13.8%9.6%
WACC

MARK WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.551.49
Additional risk adjustments0.0%0.5%
Cost of equity6.4%13.2%
Tax rate26.2%27.0%
Debt/Equity ratio
6.096.09
Cost of debt7.0%19.1%
After-tax WACC5.3%13.8%
Selected WACC9.6%

MARK'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 MARK:

cost_of_equity (9.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.55) + 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.