TEUM WACC - Weighted Average Cost of Capital
The WACC of Pareteum Corp (TEUM) is 32.8%.
| Range | Selected | |
| Cost of equity | 103.5% - 293.5% | 198.5% |
| Tax rate | 0.6% - 0.9% | 0.75% |
| Cost of debt | 7.0% - 57.6% | 32.3% |
| WACC | 7.4% - 58.2% | 32.8% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 19.86 | 48.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 103.5% | 293.5% |
| Tax rate | 0.6% | 0.9% |
| Debt/Equity ratio | 206.35 | 206.35 |
| Cost of debt | 7.0% | 57.6% |
| After-tax WACC | 7.4% | 58.2% |
| Selected WACC | 32.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TEUM | Pareteum Corp | 206.35 | 0.8 | 0 |
| AKR.V | Ackroo Inc | 0.26 | -0.03 | -0.03 |
| ALY.V | AnalytixInsight Inc | 0 | 2.7 | 2.69 |
| BEW.V | Bewhere Holdings Inc | 0.01 | 0.5 | 0.49 |
| ISDR | Issuer Direct Corp | 0.54 | 0.96 | 0.62 |
| MVP.V | MediaValet Inc | 0.03 | 0.58 | 0.56 |
| PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
| TTCM | Tautachrome Inc | 372.55 | 86.82 | 0.23 |
| VENZ.V | Venzee Technologies Inc | 0.28 | 0.32 | 0.25 |
| ZOMD.V | Zoomd Technologies Ltd | 0.06 | 2.16 | 2.04 |
| Low | High | |
| Unlevered beta | 0.24 | 0.52 |
| Relevered beta | 29.15 | 71.24 |
| Adjusted relevered beta | 19.86 | 48.06 |
TEUM'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 TEUM:
cost_of_equity (198.50%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (19.86) + 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.