TEUM WACC - Weighted Average Cost of Capital

The WACC of Pareteum Corp (TEUM) is 32.8%.

The Cost of Equity of Pareteum Corp (TEUM) is 198.50%.

The Cost of Debt of Pareteum Corp (TEUM) is 32.30%.

	Range	Selected
Cost of equity	103.50% - 293.50%	198.50%
Tax rate	0.60% - 0.90%	0.75%
Cost of debt	7.00% - 57.60%	32.30%
WACC	7.4% - 58.2%	32.8%

WACC

TEUM WACC calculation

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	103.50%	293.50%

Tax rate	0.60%	0.90%
Debt/Equity ratio	206.35	206.35
Cost of debt	7.00%	57.60%

After-tax WACC	7.4%	58.2%


Selected WACC	32.8%

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.