MIND
Mind Technology Inc
Price:  
6.60 
USD
Volume:  
82,455.00
United States | Energy Equipment & Services
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MIND WACC - Weighted Average Cost of Capital

The WACC of Mind Technology Inc (MIND) is 8.3%.

The Cost of Equity of Mind Technology Inc (MIND) is 12.40%.
The Cost of Debt of Mind Technology Inc (MIND) is 4.50%.

Range Selected
Cost of equity 10.40% - 14.40% 12.40%
Tax rate 5.40% - 8.10% 6.75%
Cost of debt 4.50% - 4.50% 4.50%
WACC 7.3% - 9.3% 8.3%
WACC

MIND WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.43 1.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.40% 14.40%
Tax rate 5.40% 8.10%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 7.3% 9.3%
Selected WACC 8.3%

MIND'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 MIND:

cost_of_equity (12.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.43) + 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.