PAR
PAR Technology Corp
Price:  
35.97 
USD
Volume:  
621,798.00
United States | Electronic Equipment, Instruments & Components
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PAR WACC - Weighted Average Cost of Capital

The WACC of PAR Technology Corp (PAR) is 10.1%.

The Cost of Equity of PAR Technology Corp (PAR) is 10.90%.
The Cost of Debt of PAR Technology Corp (PAR) is 7.00%.

Range Selected
Cost of equity 9.50% - 12.30% 10.90%
Tax rate 3.90% - 6.10% 5.00%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.9% - 11.2% 10.1%
WACC

PAR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.22 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.30%
Tax rate 3.90% 6.10%
Debt/Equity ratio 0.25 0.25
Cost of debt 7.00% 7.00%
After-tax WACC 8.9% 11.2%
Selected WACC 10.1%

PAR'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 PAR:

cost_of_equity (10.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.22) + 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.