UEIC
Universal Electronics Inc
Price:  
6.79 
USD
Volume:  
17,243.00
United States | Household Durables
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UEIC WACC - Weighted Average Cost of Capital

The WACC of Universal Electronics Inc (UEIC) is 8.6%.

The Cost of Equity of Universal Electronics Inc (UEIC) is 10.35%.
The Cost of Debt of Universal Electronics Inc (UEIC) is 6.45%.

Range Selected
Cost of equity 9.00% - 11.70% 10.35%
Tax rate 22.40% - 44.40% 33.40%
Cost of debt 5.90% - 7.00% 6.45%
WACC 7.7% - 9.5% 8.6%
WACC

UEIC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.12 1.22
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.70%
Tax rate 22.40% 44.40%
Debt/Equity ratio 0.4 0.4
Cost of debt 5.90% 7.00%
After-tax WACC 7.7% 9.5%
Selected WACC 8.6%

UEIC'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 UEIC:

cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.