RADI
Radius Global Infrastructure Inc
Price:  
15.00 
USD
Volume:  
9,507,310.00
United States | Diversified Telecommunication Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RADI WACC - Weighted Average Cost of Capital

The WACC of Radius Global Infrastructure Inc (RADI) is 6.5%.

The Cost of Equity of Radius Global Infrastructure Inc (RADI) is 5.95%.
The Cost of Debt of Radius Global Infrastructure Inc (RADI) is 7.00%.

Range Selected
Cost of equity 5.20% - 6.70% 5.95%
Tax rate 0.30% - 1.10% 0.70%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.1% - 6.8% 6.5%
WACC

RADI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.29 0.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 6.70%
Tax rate 0.30% 1.10%
Debt/Equity ratio 1.04 1.04
Cost of debt 7.00% 7.00%
After-tax WACC 6.1% 6.8%
Selected WACC 6.5%

RADI'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 RADI:

cost_of_equity (5.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.29) + 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.