UONEK
Urban One Inc
Price:  
0.44 
USD
Volume:  
70,067.00
United States | Media
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UONEK WACC - Weighted Average Cost of Capital

The WACC of Urban One Inc (UONEK) is 5.5%.

The Cost of Equity of Urban One Inc (UONEK) is 7.10%.
The Cost of Debt of Urban One Inc (UONEK) is 8.00%.

Range Selected
Cost of equity 5.90% - 8.30% 7.10%
Tax rate 27.70% - 35.70% 31.70%
Cost of debt 6.90% - 9.10% 8.00%
WACC 5.0% - 6.0% 5.5%
WACC

UONEK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.44 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 8.30%
Tax rate 27.70% 35.70%
Debt/Equity ratio 15.66 15.66
Cost of debt 6.90% 9.10%
After-tax WACC 5.0% 6.0%
Selected WACC 5.5%

UONEK'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 UONEK:

cost_of_equity (7.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.44) + 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.