SRAX
SRAX Inc
Price:  
0.60 
USD
Volume:  
2,911,610.00
United States | Media
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SRAX WACC - Weighted Average Cost of Capital

The WACC of SRAX Inc (SRAX) is 5.2%.

The Cost of Equity of SRAX Inc (SRAX) is 6.85%.
The Cost of Debt of SRAX Inc (SRAX) is 4.60%.

Range Selected
Cost of equity 4.70% - 9.00% 6.85%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.60% - 4.60% 4.60%
WACC 4.0% - 6.3% 5.2%
WACC

SRAX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.06 0.64
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.70% 9.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.92 0.92
Cost of debt 4.60% 4.60%
After-tax WACC 4.0% 6.3%
Selected WACC 5.2%

SRAX'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 SRAX:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.06) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.