MRIN WACC - Weighted Average Cost of Capital
The WACC of Marin Software Inc (MRIN) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.1% | 6.9% |
| Tax rate | 1.0% - 1.3% | 1.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.41 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.1% |
| Tax rate | 1.0% | 1.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MRIN | Marin Software Inc | 0.83 | -0.52 | -0.29 |
| AKR.V | Ackroo Inc | 0.26 | -0.03 | -0.03 |
| BLIN | Bridgeline Digital Inc | 0.03 | -0.12 | -0.12 |
| EL.V | Engagement Labs Inc | 0.55 | 0.35 | 0.23 |
| FLXI | Flexiinternational Software Inc | 0.09 | 0.27 | 0.25 |
| ISDR | Issuer Direct Corp | 0.54 | 0.96 | 0.63 |
| NCI.V | NTG Clarity Networks Inc | 0.07 | 0.77 | 0.72 |
| PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
| TEUM | Pareteum Corp | 206.35 | 0.8 | 0 |
| TKX.V | Trackx Holdings Inc | 3.23 | 0.4 | 0.1 |
| Low | High | |
| Unlevered beta | 0.06 | 0.18 |
| Relevered beta | 0.12 | 0.36 |
| Adjusted relevered beta | 0.41 | 0.57 |
MRIN'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 MRIN:
cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.