SKAS WACC - Weighted Average Cost of Capital
The WACC of Saker Aviation Services Inc (SKAS) is 6.4%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.5% | 9.1% |
| Tax rate | 21.2% - 28.2% | 24.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.1% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.82 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.5% |
| Tax rate | 21.2% | 28.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.1% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SKAS | Saker Aviation Services Inc | 0.9 | 0.65 | 0.38 |
| AENA.MC | Aena SME SA | 0.21 | 0.75 | 0.65 |
| CLEBI.IS | Celebi Hava Servisi AS | 0.35 | 1.05 | 0.82 |
| SIG.L | Signature Aviation PLC | 0.59 | 1.69 | 1.16 |
| TWL.MI | TraWell Co SpA | 0.68 | 0.05 | 0.04 |
| CAAP | Corporacion America Airports SA | 0.38 | 0.67 | 0.52 |
| ICTSF | Icts International NV | 0.01 | -0.13 | -0.13 |
| MIC | Macquarie Infrastructure Corp | 0.27 | 1.28 | 1.06 |
| SINO | Sino-Global Shipping America Ltd | 0 | 0.28 | 0.28 |
| SLCH | spotlight Capital Holdings | 990.21 | -1.56 | 0 |
| WTE.TO | Westshore Terminals Investment Corp | 0.26 | 0.61 | 0.51 |
| Low | High | |
| Unlevered beta | 0.38 | 0.52 |
| Relevered beta | 0.73 | 1.01 |
| Adjusted relevered beta | 0.82 | 1.01 |
SKAS'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 SKAS:
cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.