SNDD
RedHawk Holdings Corp
Price:  
USD
Volume:  
431,240
United States | Health Care Providers & Services

SNDD WACC - Weighted Average Cost of Capital

The WACC of RedHawk Holdings Corp (SNDD) is 5.7%.

The Cost of Equity of RedHawk Holdings Corp (SNDD) is 6.2%.
The Cost of Debt of RedHawk Holdings Corp (SNDD) is 7%.

RangeSelected
Cost of equity5.3% - 7.1%6.2%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 7.0%7%
WACC5.3% - 6.1%5.7%
WACC

SNDD WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.320.4
Additional risk adjustments0.0%0.5%
Cost of equity5.3%7.1%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt7.0%7.0%
After-tax WACC5.3%6.1%
Selected WACC5.7%

SNDD'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 SNDD:

cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.