UEIC
Universal Electronics Inc
Price:  
6.62 
USD
Volume:  
34,991.00
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 10.50%.
The Cost of Debt of Universal Electronics Inc (UEIC) is 6.45%.

Range Selected
Cost of equity 9.20% - 11.80% 10.50%
Tax rate 22.40% - 44.40% 33.40%
Cost of debt 5.90% - 7.00% 6.45%
WACC 7.8% - 9.4% 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 1.16 1.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.80%
Tax rate 22.40% 44.40%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.90% 7.00%
After-tax WACC 7.8% 9.4%
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 (10.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.16) + 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.