VRAY
ViewRay Inc
Price:  
0.03 
USD
Volume:  
108,503,000.00
United States | Health Care Equipment & Supplies
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VRAY WACC - Weighted Average Cost of Capital

The WACC of ViewRay Inc (VRAY) is 7.3%.

The Cost of Equity of ViewRay Inc (VRAY) is 45.40%.
The Cost of Debt of ViewRay Inc (VRAY) is 7.00%.

Range Selected
Cost of equity 35.60% - 55.20% 45.40%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.8% - 7.9% 7.3%
WACC

VRAY WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 6.28 8.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 35.60% 55.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 17.09 17.09
Cost of debt 7.00% 7.00%
After-tax WACC 6.8% 7.9%
Selected WACC 7.3%

VRAY'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 VRAY:

cost_of_equity (45.40%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (6.28) + 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.