MFON WACC - Weighted Average Cost of Capital
The WACC of Mobivity Holdings Corp (MFON) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.6% - 6.8% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.6% | 6.8% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MFON | Mobivity Holdings Corp | 0.43 | -0.2 | -0.15 |
| CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.83 |
| DEAL.V | Playgon Games Inc | 4.02 | -0.15 | -0.04 |
| FDIT | Findit Inc | 0.01 | 1.42 | 1.41 |
| MVEN | Themaven Inc | 0.57 | 0.21 | 0.15 |
| MVY.V | Moovly Media Inc | 1.22 | 0.36 | 0.19 |
| RSS.V | Resaas Services Inc | 0 | 0.81 | 0.81 |
| WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.02 |
| WDDD | Worlds Inc | 1.96 | -2 | -0.82 |
| YOO.V | YANGAROO Inc | 0.6 | 0.77 | 0.53 |
| Low | High | |
| Unlevered beta | 0 | 0.17 |
| Relevered beta | 0 | 0.22 |
| Adjusted relevered beta | 0.33 | 0.48 |
MFON'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 MFON:
cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.