PCYG WACC - Weighted Average Cost of Capital
The WACC of Park City Group Inc (PCYG) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.9% | 6.95% |
| Tax rate | 2.9% - 3.3% | 3.1% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.0% - 7.9% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.37 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.9% |
| Tax rate | 2.9% | 3.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 6.0% | 7.9% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
| ALY.V | AnalytixInsight Inc | 0 | 2.7 | 2.69 |
| BLIN | Bridgeline Digital Inc | 0.03 | -0.33 | -0.32 |
| ISDR | Issuer Direct Corp | 0.54 | 0.96 | 0.63 |
| MVP.V | MediaValet Inc | 0.03 | 0.58 | 0.56 |
| TEUM | Pareteum Corp | 206.35 | 0.8 | 0 |
| TTCM | Tautachrome Inc | 372.55 | 58.92 | 0.16 |
| VENZ.V | Venzee Technologies Inc | 0.27 | 0.32 | 0.25 |
| VSBY.CN | VSBLTY Groupe Technologies Corp | 0.19 | -0.8 | -0.67 |
| ZOMD.V | Zoomd Technologies Ltd | 0.06 | 2.16 | 2.03 |
| Low | High | |
| Unlevered beta | 0.16 | 0.38 |
| Relevered beta | 0.06 | 0.19 |
| Adjusted relevered beta | 0.37 | 0.46 |
PCYG'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 PCYG:
cost_of_equity (6.95%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.37) + 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.