UIS
Unisys Corp
Price:  
3.91 
USD
Volume:  
781,591.00
United States | IT Services
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UIS WACC - Weighted Average Cost of Capital

The WACC of Unisys Corp (UIS) is 7.2%.

The Cost of Equity of Unisys Corp (UIS) is 11.40%.
The Cost of Debt of Unisys Corp (UIS) is 6.90%.

Range Selected
Cost of equity 9.90% - 12.90% 11.40%
Tax rate 20.30% - 40.70% 30.50%
Cost of debt 6.80% - 7.00% 6.90%
WACC 7.0% - 7.3% 7.2%
WACC

UIS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.3 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 12.90%
Tax rate 20.30% 40.70%
Debt/Equity ratio 1.77 1.77
Cost of debt 6.80% 7.00%
After-tax WACC 7.0% 7.3%
Selected WACC 7.2%

UIS'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 UIS:

cost_of_equity (11.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.3) + 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.