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Optical Cable Corp. (OCC) — WACC Analysis

WACC Breakdown

Optical Cable Corp. (OCC) has a weighted average cost of capital (WACC) of 9.0%. The cost of equity is 8.9%, derived from a beta of 0.79 and a risk-free rate of 5.2%. The after-tax cost of debt is 11.5%. The capital structure is 95.5% equity and 4.5% debt.

Interpretation

A WACC of 9.0% is moderate, reflecting the market's balanced risk assessment of Optical Cable Corp..

Investors can compare OCC's WACC of 9.0% against industry peers to gauge its relative financing costs. A beta of 0.79 reflects the stock's volatility relative to the broader market.

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VALUATION

OCC WACC: 8.98% for Optical Cable Corp.

Current inputs imply a 8.86% cost of equity and a 14.61% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Optical Cable Corp. Common Stock (OCC) WACC Results
Weighted Average Cost of Capital
8.98%
Cost of Equity
8.86%
Risk-Free Rate5.22%
Beta0.79
Market Risk Premium4.23%
Cost of Debt
11.54%
Pre-Tax Cost of Debt14.61%
Tax Rate21.00%
Tax Shield3.07%
Capital Structure
Equity: 95.53%($135.19M)
Debt: 4.47%($6.33M)
Equity Component
8.46%
95.53% × 8.86%
Debt Component
0.52%
4.47% × 11.54%

Optical Cable Corp. (OCC) WACC in context

Optical Cable Corp. (OCC) currently screens with an estimated WACC of 8.98%. That blends a 8.86% cost of equity, a 14.61% pre-tax cost of debt, and a 95.53% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What OCC WACC implies

A 8.98% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates OCC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.79 and equity accounts for 95.53% 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.