PSCO WACC - Weighted Average Cost of Capital
The WACC of ProtoSource Corp (PSCO) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 11.4% | 8.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 8.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 11.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 8.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PSCO | ProtoSource Corp | 0.75 | 1.83 | 1.18 |
| AVCT | American Virtual Cloud Technologies Inc | 0.12 | 0.77 | 0.71 |
| CMFV | Comf5 International Inc | 1346.63 | 0 | 0 |
| CXDO | Crexendo Inc | 0 | 1.62 | 1.61 |
| DXX.V | DXSTORM.com Inc | 0.34 | -0.09 | -0.07 |
| GAWK | Gawk Inc | 5468.96 | 0 | 0 |
| IWBB | IWeb Inc | 0 | 1.07 | 1.07 |
| LIVC | Live Current Media Inc | 74.52 | -0.27 | 0 |
| MTLO.V | Martello Technologies Group Inc | 1.89 | 0.59 | 0.25 |
| URL.CN | NameSilo Technologies Corp | 0.04 | 0.98 | 0.95 |
| Low | High | |
| Unlevered beta | 0.15 | 0.81 |
| Relevered beta | 0.22 | 1.25 |
| Adjusted relevered beta | 0.48 | 1.17 |
PSCO'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 PSCO:
cost_of_equity (8.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.