SESI WACC - Weighted Average Cost of Capital
The WACC of SES Solar Inc (SESI) is 5.0%.
| Range | Selected | |
| Cost of equity | 35544.2% - 79729.1% | 57636.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.8% - 6.1% | 5.45% |
| WACC | 4.1% - 5.8% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 7726.15 | 14236.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 35544.2% | 79729.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 59111.51 | 59111.51 |
| Cost of debt | 4.8% | 6.1% |
| After-tax WACC | 4.1% | 5.8% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SESI | SES Solar Inc | 59111.51 | -12.43 | 0 |
| ASTI | Ascent Solar Technologies Inc | 0.01 | 0.57 | 0.57 |
| EMAN | eMagin Corp | 0.09 | 1.49 | 1.39 |
| LEDS | SemiLEDs Corp | 0.16 | 0.25 | 0.22 |
| NPTN | NeoPhotonics Corp | 0.05 | 0.75 | 0.72 |
| PTK.V | POET Technologies Inc | 0 | 0.3 | 0.3 |
| QNC.V | Quantum Numbers Corp | 0 | 0.15 | 0.15 |
| QUIK | QuickLogic Corp | 0.23 | 2.08 | 1.78 |
| SEV.V | Spectra7 Microsystems Inc | 7.07 | 0.94 | 0.15 |
| SODI | Solitron Devices Inc | 0.13 | 0.07 | 0.06 |
| SQNS | Sequans Communications SA | 1.69 | 0.98 | 0.44 |
| Low | High | |
| Unlevered beta | 0.22 | 0.44 |
| Relevered beta | 11531.07 | 21247.99 |
| Adjusted relevered beta | 7726.15 | 14236.48 |
SESI'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 SESI:
cost_of_equity (57,636.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (7726.15) + 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.