TCCO WACC - Weighted Average Cost of Capital
The WACC of Technical Communications Corp (TCCO) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.9% - 8693.0% | 4348.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 5.6% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -454.22 | 1178.15 |
| Additional risk adjustments | 2090.5% | 2091.0% |
| Cost of equity | 4.9% | 8693.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 16986.63 | 16986.63 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 5.6% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TCCO | Technical Communications Corp | 16986.63 | -74.71 | -0.01 |
| ATVK | Ameritek Ventures | 0.48 | -0.96 | -0.71 |
| IFXY | Infrax Systems Inc | 0.41 | 0.73 | 0.56 |
| INVT | Inventergy Global Inc | 42.47 | 1.23 | 0.04 |
| LTE.V | Lite Access Technologies Inc | 0.08 | -0.1 | -0.09 |
| PRKR | ParkerVision Inc | 1.31 | 0.58 | 0.3 |
| VTI.V | Valdor Technology International Inc | 0.08 | -0.14 | -0.14 |
| YFI.V | Edgewater Wireless Systems Inc | 0.02 | -0.45 | -0.45 |
| YTY.V | Wi2wi Corp | 1.9 | 0.84 | 0.35 |
| Low | High | |
| Unlevered beta | -0.07 | 0.03 |
| Relevered beta | -678.43 | 1757.94 |
| Adjusted relevered beta | -454.22 | 1178.15 |
TCCO'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 TCCO:
cost_of_equity (4,348.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-454.22) + risk_adjustments (2,090.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.