SRTS WACC - Weighted Average Cost of Capital
The WACC of Sensus Healthcare Inc (SRTS) is 8.9%.
| Range | Selected | |
| Cost of equity | 11.4% - 15.6% | 13.5% |
| Tax rate | 8.0% - 18.3% | 13.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 9.9% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.63 | 1.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.4% | 15.6% |
| Tax rate | 8.0% | 18.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 9.9% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRTS | Sensus Healthcare Inc | 0.95 | 0.84 | 0.46 |
| ASG.V | Aurora Spine Corp | 0.21 | 0.93 | 0.79 |
| CHFS | CHF Solutions Inc | 0 | 1.32 | 1.32 |
| DXCM | Dexcom Inc | 0.08 | 1.19 | 1.11 |
| EKSO | Ekso Bionics Holdings Inc | 0.65 | 1.21 | 0.77 |
| HJLI | Hancock Jaffe Laboratories Inc | 0 | 1.41 | 1.41 |
| IGAP | Integrity Applications Inc | 0 | -1.66 | -1.66 |
| NMTC | Neuroone Medical Technologies Corp | 0.06 | 1.72 | 1.63 |
| NVCN.TO | Neovasc Inc | 0.13 | 1.98 | 1.79 |
| RSLS | ReShape Lifesciences Inc | 0.14 | 1.4 | 1.25 |
| SNWV | SANUWAVE Health Inc | 0.1 | 1.02 | 0.93 |
| Low | High | |
| Unlevered beta | 0.93 | 1.25 |
| Relevered beta | 1.94 | 2.39 |
| Adjusted relevered beta | 1.63 | 1.93 |
SRTS'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 SRTS:
cost_of_equity (13.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.63) + 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.