PERI WACC - Weighted Average Cost of Capital
The WACC of Perion Network Ltd (PERI) is 8.2%.
| Range | Selected | |
| Cost of equity | 8.6% - 12.1% | 10.35% |
| Tax rate | 13.8% - 14.7% | 14.25% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.3% - 9.0% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.03 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 12.1% |
| Tax rate | 13.8% | 14.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.3% | 9.0% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PERI | Perion Network Ltd | 0.82 | 0.91 | 0.54 |
| AQUA.V | Aquarius AI Inc | 3.15 | 1.59 | 0.43 |
| BMTM | Bright Mountain Media Inc | 14.19 | -0.2 | -0.02 |
| CRWE | Crown Equity Holdings Inc | 0.01 | 0.91 | 0.9 |
| ENGA | Engage Mobility Inc | 0 | 1.06 | 1.06 |
| FLNT | Fluent Inc | 0.84 | 1.17 | 0.68 |
| HRTH | Harte Hanks Inc | 0.61 | 1.38 | 0.91 |
| NXMR | Nextmart Inc | 16.92 | 0.81 | 0.05 |
| RAY.A.TO | Stingray Group Inc | 0.54 | 0.84 | 0.57 |
| TTGT | TechTarget Inc | 1.67 | 1.35 | 0.55 |
| WIMI | WiMi Hologram Cloud Inc | 0.29 | 1.42 | 1.14 |
| Low | High | |
| Unlevered beta | 0.55 | 0.68 |
| Relevered beta | 1.04 | 1.42 |
| Adjusted relevered beta | 1.03 | 1.28 |
PERI'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 PERI:
cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.03) + 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.