WTT WACC - Weighted Average Cost of Capital
The WACC of Wireless Telecom Group Inc (WTT) is 6.9%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.4% | 6.95% |
| Tax rate | 35.8% - 49.8% | 42.8% |
| Cost of debt | 11.9% - 11.9% | 11.9% |
| WACC | 6.6% - 7.2% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.4% |
| Tax rate | 35.8% | 49.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 11.9% | 11.9% |
| After-tax WACC | 6.6% | 7.2% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WTT | Wireless Telecom Group Inc | 1.06 | 0.25 | 0.16 |
| BNSO | Bonso Electronics International Inc | 0.23 | 0.55 | 0.49 |
| IMTE | Integrated Media Technology Ltd | 1.77 | -0.92 | -0.46 |
| ISNS | Image Sensing Systems Inc | 0.03 | 1.11 | 1.09 |
| LCTC | Lifeloc Technologies Inc | 0.22 | 0.24 | 0.22 |
| LPTH | LightPath Technologies Inc | 0.01 | 1.03 | 1.02 |
| MACE | Mace Security International Inc | 1.74 | -0.24 | -0.12 |
| SMIT | Schmitt Industries Inc | 40.78 | 1.15 | 0.05 |
| TNLX | Trans Lux Corp | 0.91 | -0.75 | -0.5 |
| TRCK | Track Group Inc | 17.89 | 0.14 | 0.01 |
| VOTI.V | VOTI Detection Inc | 3.37 | 1.6 | 0.56 |
| Low | High | |
| Unlevered beta | 0.05 | 0.22 |
| Relevered beta | 0.06 | 0.45 |
| Adjusted relevered beta | 0.37 | 0.63 |
WTT'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 WTT:
cost_of_equity (6.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.