TKNO
Alpha Teknova Inc
Price:  
4.24 
USD
Volume:  
244,061.00
United States | N/A
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TKNO WACC - Weighted Average Cost of Capital

The WACC of Alpha Teknova Inc (TKNO) is 10.3%.

The Cost of Equity of Alpha Teknova Inc (TKNO) is 9.45%.
The Cost of Debt of Alpha Teknova Inc (TKNO) is 31.70%.

Range Selected
Cost of equity 7.70% - 11.20% 9.45%
Tax rate 2.70% - 11.30% 7.00%
Cost of debt 7.00% - 56.40% 31.70%
WACC 7.6% - 13.0% 10.3%
WACC

TKNO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.20%
Tax rate 2.70% 11.30%
Debt/Equity ratio 0.05 0.05
Cost of debt 7.00% 56.40%
After-tax WACC 7.6% 13.0%
Selected WACC 10.3%

TKNO'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 TKNO:

cost_of_equity (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.