ZETA WACC - Weighted Average Cost of Capital

The WACC of Zeta Global Holdings Corp (ZETA) is 7.8%.

The Cost of Equity of Zeta Global Holdings Corp (ZETA) is 7.90%.

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

	Range	Selected
Cost of equity	6.60% - 9.20%	7.90%
Tax rate	0.50% - 1.00%	0.75%
Cost of debt	4.10% - 7.00%	5.55%
WACC	6.5% - 9.1%	7.8%

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	0.6	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.20%

Tax rate	0.50%	1.00%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.10%	7.00%

After-tax WACC	6.5%	9.1%


Selected WACC	7.8%

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 (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.6) + 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.