The WACC of Vislink Technologies Inc (VISL) is 7.7%.
Range | Selected | |
Cost of equity | 6.6% - 8.8% | 7.7% |
Tax rate | 0.4% - 1.1% | 0.75% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 6.6% - 8.7% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.59 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.6% | 8.8% |
Tax rate | 0.4% | 1.1% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 6.6% | 8.7% |
Selected WACC | 7.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VISL | Vislink Technologies Inc | 0.01 | 0.58 | 0.58 |
BDR | Blonder Tongue Laboratories Inc | 0.99 | 0.65 | 0.33 |
FRTN | Fortran Corp | 2.51 | 1.81 | 0.52 |
ONDS | Ondas Holdings Inc | 0.22 | 1.48 | 1.22 |
PRKR | ParkerVision Inc | 1.32 | 0.62 | 0.27 |
RDL.TO | Redline Communications Group Inc | 0.56 | 0.68 | 0.44 |
RESN | Resonant Inc | 0 | 1.25 | 1.25 |
TTZ.V | Total Telcom Inc | 0.07 | 0.69 | 0.64 |
VSAT | ViaSat Inc | 3.73 | 0.35 | 0.07 |
ALKLK.PA | Kerlink SA | 1.81 | -0.07 | -0.03 |
Low | High | |
Unlevered beta | 0.39 | 0.54 |
Relevered beta | 0.39 | 0.55 |
Adjusted relevered beta | 0.59 | 0.7 |
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 VISL:
cost_of_equity (7.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.59) + 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.