VSAT
ViaSat Inc
Price:  
16.28 
USD
Volume:  
2,541,461.00
United States | Communications Equipment
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ViaSat WACC - Weighted Average Cost of Capital

The WACC of ViaSat Inc (VSAT) is 11.9%.

The Cost of Equity of ViaSat Inc (VSAT) is 13.85%.
The Cost of Debt of ViaSat Inc (VSAT) is 13.95%.

Range Selected
Cost of equity 11.90% - 15.80% 13.85%
Tax rate 13.30% - 19.20% 16.25%
Cost of debt 4.00% - 23.90% 13.95%
WACC 5.3% - 18.5% 11.9%
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 1.75 1.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.90% 15.80%
Tax rate 13.30% 19.20%
Debt/Equity ratio 3.73 3.73
Cost of debt 4.00% 23.90%
After-tax WACC 5.3% 18.5%
Selected WACC 11.9%

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 (13.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.75) + 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.