URAL
United Rail Inc
Price:  
0.00 
USD
Volume:  
180.00
United States | Road & Rail
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URAL WACC - Weighted Average Cost of Capital

The WACC of United Rail Inc (URAL) is 7.2%.

The Cost of Equity of United Rail Inc (URAL) is 172,225.70%.
The Cost of Debt of United Rail Inc (URAL) is 5.00%.

Range Selected
Cost of equity 144,118.70% - 200,332.70% 172,225.70%
Tax rate 0.20% - 0.20% 0.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 7.6% 7.2%
WACC

URAL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 31329.31 35772.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 144,118.70% 200,332.70%
Tax rate 0.20% 0.20%
Debt/Equity ratio 76229.77 76229.77
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 7.6%
Selected WACC 7.2%

URAL'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 URAL:

cost_of_equity (172,225.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (31329.31) + 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.