VISM WACC - Weighted Average Cost of Capital
The WACC of Visium Technologies Inc (VISM) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.58 | 0.58 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VISM | Visium Technologies Inc | 0.58 | 0.92 | 0.65 |
| COWI | CoroWare Inc | 59.14 | 0 | 0 |
| EAXR | Ealixir Inc | 0.18 | -0.14 | -0.13 |
| ETEC | Emtec Inc | 9.09 | 0.91 | 0.12 |
| HCKT | Hackett Group Inc | 0.02 | 0.98 | 0.97 |
| IMCI | Infinite Group Inc | 38942.31 | 1.06 | 0 |
| NDVN | nDivision Inc | 3.93 | 1.08 | 0.28 |
| SANT | Santeon Group Inc | 88.75 | 1.55 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.15 |
| Relevered beta | 0.01 | 0.25 |
| Adjusted relevered beta | 0.34 | 0.5 |
VISM'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 VISM:
cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.