ZETA
Zeta Global Holdings Corp
Price:  
13.68 
USD
Volume:  
10,268,970.00
United States | N/A
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ZETA WACC - Weighted Average Cost of Capital

The WACC of Zeta Global Holdings Corp (ZETA) is 8.0%.

The Cost of Equity of Zeta Global Holdings Corp (ZETA) is 8.20%.
The Cost of Debt of Zeta Global Holdings Corp (ZETA) is 5.55%.

Range Selected
Cost of equity 6.60% - 9.80% 8.20%
Tax rate 0.50% - 1.00% 0.75%
Cost of debt 4.10% - 7.00% 5.55%
WACC 6.4% - 9.6% 8.0%
WACC

ZETA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.59 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.80%
Tax rate 0.50% 1.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.10% 7.00%
After-tax WACC 6.4% 9.6%
Selected WACC 8.0%

ZETA'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 ZETA:

cost_of_equity (8.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.59) + 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.