RDKO.CN
Radiko Holdings Corp
Price:  
0.01 
CAD
Volume:  
807,650.00
United States | Pharmaceuticals
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RDKO.CN WACC - Weighted Average Cost of Capital

The WACC of Radiko Holdings Corp (RDKO.CN) is 7.3%.

The Cost of Equity of Radiko Holdings Corp (RDKO.CN) is 8.20%.
The Cost of Debt of Radiko Holdings Corp (RDKO.CN) is 7.00%.

Range Selected
Cost of equity 7.10% - 9.30% 8.20%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.5% - 8.1% 7.3%
WACC

RDKO.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.8 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.30%
Tax rate 26.50% 26.50%
Debt/Equity ratio 0.42 0.42
Cost of debt 7.00% 7.00%
After-tax WACC 6.5% 8.1%
Selected WACC 7.3%

RDKO.CN'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 RDKO.CN:

cost_of_equity (8.20%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.8) + 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.