UAVS WACC - Weighted Average Cost of Capital
The WACC of Ageagle Aerial Systems Inc (UAVS) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.2% | 8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 10.7% | 8.85% |
| WACC | 6.6% - 9.1% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.63 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 7.0% | 10.7% |
| After-tax WACC | 6.6% | 9.1% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UAVS | Ageagle Aerial Systems Inc | 0.13 | 1.88 | 1.72 |
| ARTW | Art's Way Manufacturing Co Inc | 0.46 | 0.7 | 0.53 |
| BUI.TO | Buhler Industries Inc | 0.22 | 0.75 | 0.65 |
| CSX.V | Clean Seed Capital Group Ltd | 0.67 | -0.03 | -0.02 |
| ENW.V | Enwave Corp | 0.04 | 0.24 | 0.23 |
| KLS.TO | Kelso Technologies Inc | 0.02 | -0.59 | -0.58 |
| LNN | Lindsay Corp | 0.07 | 0.85 | 0.8 |
| TWI | Titan International Inc | 0.85 | 1.73 | 1.07 |
| VJET | Voxeljet AG | 2.89 | 0.77 | 0.25 |
| XBC.TO | Xebec Adsorption Inc | 1.12 | 1.05 | 0.58 |
| Low | High | |
| Unlevered beta | 0.41 | 0.61 |
| Relevered beta | 0.45 | 0.67 |
| Adjusted relevered beta | 0.63 | 0.78 |
UAVS'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 UAVS:
cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.63) + 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.