VSAT
ViaSat Inc
Price:  
9.38 
USD
Volume:  
1,870,928.00
United States | Communications Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ViaSat WACC - Weighted Average Cost of Capital

The WACC of ViaSat Inc (VSAT) is 11.0%.

The Cost of Equity of ViaSat Inc (VSAT) is 15.70%.
The Cost of Debt of ViaSat Inc (VSAT) is 13.95%.

Range Selected
Cost of equity 12.90% - 18.50% 15.70%
Tax rate 21.60% - 28.10% 24.85%
Cost of debt 4.00% - 23.90% 13.95%
WACC 4.5% - 17.4% 11.0%
WACC

ViaSat WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.96 2.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.90% 18.50%
Tax rate 21.60% 28.10%
Debt/Equity ratio 5.93 5.93
Cost of debt 4.00% 23.90%
After-tax WACC 4.5% 17.4%
Selected WACC 11.0%

ViaSat'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 ViaSat:

cost_of_equity (15.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.96) + 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.