TBTC WACC - Weighted Average Cost of Capital
The WACC of Table Trac Inc (TBTC) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.2% | 6.7% |
| Tax rate | 23.0% - 25.2% | 24.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.9% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.29 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.2% |
| Tax rate | 23.0% | 25.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.9% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TBTC | Table Trac Inc | 1.13 | 0.73 | 0.4 |
| CPHC | Canterbury Park Holding Corp | 0 | 0.14 | 0.14 |
| ELRA | Elray Resources Inc | 3.59 | -1.23 | -0.33 |
| FLL | Full House Resorts Inc | 3.49 | 1.33 | 0.37 |
| GLXZ | Galaxy Gaming Inc | 0.77 | -0.66 | -0.42 |
| IGT | International Game Technology PLC | 1.69 | 0.76 | 0.34 |
| KENS | Kenilworth Systems Corp | 0 | -0.57 | -0.57 |
| TNA.V | Evergreen Gaming Corp | 0.15 | 1.02 | 0.92 |
| WBAI | 500.Com Ltd | 0 | 1.78 | 1.78 |
| WPFH | World Poker Fund Holdings Inc | 28337.56 | 0.2 | 0 |
| SFCA.PA | Societe Francaise de Casinos SA | 0.36 | -0.1 | -0.08 |
| Low | High | |
| Unlevered beta | 0 | 0.34 |
| Relevered beta | -0.06 | 0.39 |
| Adjusted relevered beta | 0.29 | 0.59 |
TBTC'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 TBTC:
cost_of_equity (6.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.29) + 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.