PALT WACC - Weighted Average Cost of Capital
The WACC of Paltalk Inc (PALT) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.0% | 6.5% |
| Tax rate | 1.2% - 1.7% | 1.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.24 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.0% |
| Tax rate | 1.2% | 1.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PALT | Paltalk Inc | 0.99 | 1.28 | 0.65 |
| CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.75 |
| EVTI | Eventure Interactive Inc | 643.34 | 0.94 | 0 |
| FDIT | Findit Inc | 0.01 | 1.42 | 1.41 |
| FLYY.CN | Media Central Corporation Inc | 0.26 | -0.24 | -0.19 |
| ILIM | Il2m International Corp | 1.97 | -0.54 | -0.18 |
| MBO.V | Mobio Technologies Inc | 1 | -0.47 | -0.24 |
| MKT.V | Deepmarkit Corp | 0.06 | 0.48 | 0.45 |
| MYID.V | Killi Ltd | 0.08 | 1.46 | 1.35 |
| WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.01 |
| YOO.V | YANGAROO Inc | 0.63 | 1.04 | 0.64 |
| Low | High | |
| Unlevered beta | 0 | 0.45 |
| Relevered beta | -0.13 | 0.34 |
| Adjusted relevered beta | 0.24 | 0.56 |
PALT'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 PALT:
cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.24) + 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.