The WACC of Access-Power & Co Inc (ACCR) is 5.6%.
Range | Selected | |
Cost of equity | 5.9% - 9.2% | 7.55% |
Tax rate | 27.0% - 27.0% | 27% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.8% - 6.4% | 5.6% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 0.63 | 0.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 9.2% |
Tax rate | 27.0% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.8% | 6.4% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ACCR | Access-Power & Co Inc | 1.04 | -0.62 | -0.35 |
ARGQ | Argentum 47 Inc | 29.97 | 0.43 | 0.02 |
ASFT | AppSoft Technologies Inc | 0.39 | -0.16 | -0.12 |
BLGI | BLGI Inc | 748.98 | -84.86 | -0.15 |
BQST | Bioquest Corp | 0.03 | 49.23 | 48.33 |
DUUO | Duo World Inc | 128.45 | -48.97 | -0.52 |
ETER | Enterra Corp | 1.01 | -0.38 | -0.22 |
GCAN | Greater Cannabis Company Inc | 1.48 | -1.12 | -0.54 |
GZIC | GZ6G Technologies Corp | 622.27 | -168.87 | -0.37 |
HAON | Halitron Inc | 156.96 | 0 | 0 |
SPFY.CN | Spacefy Inc | 0.25 | -2.61 | -2.21 |
Low | High | |
Unlevered beta | -0.35 | -0.15 |
Relevered beta | 0.45 | 0.96 |
Adjusted relevered beta | 0.63 | 0.97 |
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 ACCR:
cost_of_equity (7.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.63) + 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.