RESN WACC - Weighted Average Cost of Capital
The WACC of Resonant Inc (RESN) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.6% | 7.25% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.9% - 8.6% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.64 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.6% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.9% | 8.6% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RESN | Resonant Inc | 0 | 1.25 | 1.25 |
| COMM | CommScope Holding Company Inc | 7.26 | 1.97 | 0.31 |
| FRTN | Fortran Corp | 2.8 | 2.1 | 0.69 |
| GNSS | Genasys Inc | 0.16 | 1.62 | 1.46 |
| MINM | Zoom Telephonics Inc | 1 | -0.61 | -0.35 |
| NIHK | Video River Networks Inc | 0.54 | 1.69 | 1.21 |
| ONDS | Ondas Holdings Inc | 0.46 | 0.97 | 0.73 |
| RDL.TO | Redline Communications Group Inc | 0.56 | 0.68 | 0.49 |
| TTZ.V | Total Telcom Inc | 0.08 | 0.68 | 0.64 |
| VISL | Vislink Technologies Inc | 0.04 | 0.76 | 0.74 |
| Low | High | |
| Unlevered beta | 0.67 | 0.73 |
| Relevered beta | 0.46 | 0.76 |
| Adjusted relevered beta | 0.64 | 0.84 |
RESN'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 RESN:
cost_of_equity (7.25%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.64) + 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.