VSAT
ViaSat Inc
Price:  
9.25 
USD
Volume:  
4,050,051.00
United States | Communications Equipment
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ViaSat WACC - Weighted Average Cost of Capital

The WACC of ViaSat Inc (VSAT) is 12.4%.

The Cost of Equity of ViaSat Inc (VSAT) is 18.50%.
The Cost of Debt of ViaSat Inc (VSAT) is 13.95%.

Range Selected
Cost of equity 15.20% - 21.80% 18.50%
Tax rate 13.30% - 19.20% 16.25%
Cost of debt 4.00% - 23.90% 13.95%
WACC 5.1% - 19.6% 12.4%
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 2.45 3.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.20% 21.80%
Tax rate 13.30% 19.20%
Debt/Equity ratio 6.08 6.08
Cost of debt 4.00% 23.90%
After-tax WACC 5.1% 19.6%
Selected WACC 12.4%

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 (18.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.45) + 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.