PUPS
Pick Ups Plus Inc
Price:  
USD
Volume:  
89,640
United States | Specialty Retail

PUPS WACC - Weighted Average Cost of Capital

The WACC of Pick Ups Plus Inc (PUPS) is 5.3%.

The Cost of Equity of Pick Ups Plus Inc (PUPS) is 8657.15%.
The Cost of Debt of Pick Ups Plus Inc (PUPS) is 6.2%.

RangeSelected
Cost of equity5743.8% - 11570.5%8657.15%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.4% - 7.0%6.2%
WACC4.5% - 6.1%5.3%
WACC

PUPS WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1247.822065.29
Additional risk adjustments0.0%0.5%
Cost of equity5743.8%11570.5%
Tax rate26.2%27.0%
Debt/Equity ratio
12154.6412154.64
Cost of debt5.4%7.0%
After-tax WACC4.5%6.1%
Selected WACC5.3%

PUPS'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 PUPS:

cost_of_equity (8,657.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1247.82) + 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.