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Cable One, Inc. (CABO) — WACC Analysis

WACC Breakdown

Cable One, Inc. (CABO) has a weighted average cost of capital (WACC) of 4.2%. The cost of equity is 8.6%, derived from a beta of 0.77 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.1%. The capital structure is 1.0% equity and 99.0% debt.

Interpretation

A WACC of 4.2% suggests that the market views Cable One, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CABO's WACC of 4.2% against industry peers to gauge its relative financing costs. A beta of 0.77 reflects the stock's volatility relative to the broader market.

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VALUATION

CABO WACC: 4.15% for Cable One, Inc.

Current inputs imply a 8.56% cost of equity and a 4.11% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Cable One, Inc. Common Stock (CABO) WACC Results
Weighted Average Cost of Capital
4.15%
Cost of Equity
8.56%
Risk-Free Rate4.98%
Beta0.77
Market Risk Premium4.23%
Cost of Debt
4.11%
Pre-Tax Cost of Debt4.11%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 0.98%($30.19M)
Debt: 99.02%($3058.35M)
Equity Component
0.08%
0.98% × 8.56%
Debt Component
4.07%
99.02% × 4.11%

Cable One, Inc. (CABO) WACC in context

Cable One, Inc. (CABO) currently screens with an estimated WACC of 4.15%. That blends a 8.56% cost of equity, a 4.11% pre-tax cost of debt, and a 0.98% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CABO WACC implies

A 4.15% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CABO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.77 and equity accounts for 0.98% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.