SGRB WACC - Weighted Average Cost of Capital
The WACC of SigmaBroadband Co (SGRB) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 5.1% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.46 | 1.46 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 5.1% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGRB | SigmaBroadband Co | 1.46 | -0.75 | -0.36 |
| ADYA.V | Adya Inc | 0.2 | -1.42 | -1.24 |
| ALSK | Alaska Communications Systems Group Inc | 0.91 | 1.48 | 0.89 |
| ATNI | ATN International Inc | 2.48 | 0.57 | 0.2 |
| CVST | Covista Communications Inc | 98.66 | 0 | 0 |
| LICT | LICT Corp | 0.24 | -0.02 | -0.02 |
| NTLK | Net Talk.com Inc | 25258.92 | 0 | 0 |
| NUVR | Nuvera Communications Inc | 2.62 | -0.02 | -0.01 |
| UPCO.CN | Upco International Inc | 0.05 | 1.17 | 1.13 |
| VZ | Verizon Communications Inc | 0.78 | 0.27 | 0.17 |
| Low | High | |
| Unlevered beta | 0 | 0.07 |
| Relevered beta | 0 | 0.15 |
| Adjusted relevered beta | 0.33 | 0.43 |
SGRB'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 SGRB:
cost_of_equity (6.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.