MASS WACC - Weighted Average Cost of Capital
The WACC of 908 Devices Inc. (MASS) is 8.0%.
| Range | Selected | |
| Cost of equity | 10.6% - 14.2% | 12.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.1% - 8.9% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.46 | 1.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 14.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.1% | 8.9% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MASS | 908 Devices Inc. | 1.02 | 0.97 | 0.56 |
| CRAWA | Crawford United Corp | 0.04 | 0.33 | 0.32 |
| DGLY | Digital Ally Inc | 35.71 | 1.48 | 0.05 |
| LPS.V | Legend Power Systems Inc | 0.02 | 0.94 | 0.93 |
| LPTH | LightPath Technologies Inc | 0.01 | 1.01 | 1.01 |
| MICT | MICT Inc | 0.01 | 1.14 | 1.13 |
| MRM.CN | Micromem Technologies Inc | 0.13 | 0.42 | 0.38 |
| PAR | PAR Technology Corp | 0.14 | 1.49 | 1.35 |
| PHO.TO | Photon Control Inc | 0 | 1.62 | 1.61 |
| PNG.V | Kraken Robotics Inc | 0.03 | 1.56 | 1.53 |
| RCAT | Red Cat Holdings Inc | 0 | 1.21 | 1.21 |
| Low | High | |
| Unlevered beta | 0.93 | 1.13 |
| Relevered beta | 1.69 | 2.01 |
| Adjusted relevered beta | 1.46 | 1.68 |
MASS'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 MASS:
cost_of_equity (12.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.46) + 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.