ROWC
Rowe Co
Price:  
0.00 
USD
Volume:  
13,980.00
United States | Household Durables
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ROWC WACC - Weighted Average Cost of Capital

The WACC of Rowe Co (ROWC) is 3.4%.

The Cost of Equity of Rowe Co (ROWC) is 4,845.70%.
The Cost of Debt of Rowe Co (ROWC) is 4.55%.

Range Selected
Cost of equity 2,586.40% - 7,105.00% 4,845.70%
Tax rate 36.80% - 39.70% 38.25%
Cost of debt 4.00% - 5.10% 4.55%
WACC 2.8% - 3.9% 3.4%
WACC

ROWC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 561.41 1267.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 2,586.40% 7,105.00%
Tax rate 36.80% 39.70%
Debt/Equity ratio 8580.07 8580.07
Cost of debt 4.00% 5.10%
After-tax WACC 2.8% 3.9%
Selected WACC 3.4%

ROWC'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 ROWC:

cost_of_equity (4,845.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (561.41) + 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.