OSS
One Stop Systems Inc
Price:  
2.42 
USD
Volume:  
117,286.00
United States | Technology Hardware, Storage & Peripherals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

OSS WACC - Weighted Average Cost of Capital

The WACC of One Stop Systems Inc (OSS) is 7.9%.

The Cost of Equity of One Stop Systems Inc (OSS) is 7.95%.
The Cost of Debt of One Stop Systems Inc (OSS) is 5.50%.

Range Selected
Cost of equity 6.80% - 9.10% 7.95%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.8% - 9.0% 7.9%
WACC

OSS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.65 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 7.00%
After-tax WACC 6.8% 9.0%
Selected WACC 7.9%

OSS'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 OSS:

cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.