The WACC of Extreme Vehicle Battery Technologies Corp (ACDC.CN) is 9.2%.
Range | Selected | |
Cost of equity | 8.0% - 10.4% | 9.2% |
Tax rate | 26.5% - 26.5% | 26.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.0% - 10.4% | 9.2% |
Category | Low | High |
Long-term bond rate | 3.4% | 3.9% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 0.99 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.0% | 10.4% |
Tax rate | 26.5% | 26.5% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.0% | 10.4% |
Selected WACC | 9.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ACDC.CN | Extreme Vehicle Battery Technologies Corp | 0 | -5.03 | -5.01 |
ALY.V | AnalytixInsight Inc | 0.92 | 2.7 | 1.61 |
AXE.V | Acceleware Ltd | 0.2 | -1.04 | -0.9 |
FDCT | FDCTECH Inc | 0.1 | -15.64 | -14.56 |
IOTC | Iota Communications Inc | 202.21 | -0.75 | -0.01 |
MBLV | Globex Holdings Corp | 15719.63 | 47.96 | 0 |
MVP.V | MediaValet Inc | 0.03 | 0.58 | 0.56 |
PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
PERK.CN | Perk Labs Inc | 0.03 | -0.4 | -0.4 |
PHUN | Phunware Inc | 1.13 | 1.38 | 0.76 |
VSBY.CN | VSBLTY Groupe Technologies Corp | 0.19 | -0.92 | -0.81 |
Low | High | |
Unlevered beta | -0.4 | 0 |
Relevered beta | 0.99 | 1.07 |
Adjusted relevered beta | 0.99 | 1.05 |
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 ACDC.CN:
cost_of_equity (9.20%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.99) + 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.