SPIR
Spire Global Inc
Price:  
11.66 
USD
Volume:  
393,458.00
United States | N/A
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SPIR WACC - Weighted Average Cost of Capital

The WACC of Spire Global Inc (SPIR) is 12.4%.

The Cost of Equity of Spire Global Inc (SPIR) is 13.05%.
The Cost of Debt of Spire Global Inc (SPIR) is 9.95%.

Range Selected
Cost of equity 11.40% - 14.70% 13.05%
Tax rate 0.30% - 0.70% 0.50%
Cost of debt 7.00% - 12.90% 9.95%
WACC 10.5% - 14.3% 12.4%
WACC

SPIR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.64 1.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 14.70%
Tax rate 0.30% 0.70%
Debt/Equity ratio 0.25 0.25
Cost of debt 7.00% 12.90%
After-tax WACC 10.5% 14.3%
Selected WACC 12.4%

SPIR'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 SPIR:

cost_of_equity (13.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.64) + 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.