AGMH WACC - Weighted Average Cost of Capital
The WACC of AGM Group Holdings Inc (AGMH) is 7.0%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.1% | 10.4% |
| Tax rate | 26.9% - 27.5% | 27.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 7.8% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.05 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.1% |
| Tax rate | 26.9% | 27.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 7.8% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AGMH | AGM Group Holdings Inc | 1.16 | 1.41 | 0.77 |
| CIIX | ChineseInvestors.com Inc | 1119.23 | 1.05 | 0 |
| DFIN | Donnelley Financial Solutions Inc | 0.07 | 1.22 | 1.16 |
| EQOS | Diginex Ltd | 1.15 | 1.67 | 0.91 |
| FNQ.CN | Fineqia International Inc | 0.15 | 0.46 | 0.41 |
| GRNQ | GreenPro Capital Corp | 0 | -0.07 | -0.07 |
| MCO | Moody's Corp | 0.08 | 1.12 | 1.06 |
| MORN | Morningstar Inc | 0.06 | 0.88 | 0.84 |
| MSCI | MSCI Inc | 0.1 | 0.82 | 0.77 |
| SPGI | S&P Global Inc | 0.07 | 0.85 | 0.81 |
| Low | High | |
| Unlevered beta | 0.77 | 0.82 |
| Relevered beta | 1.07 | 1.42 |
| Adjusted relevered beta | 1.05 | 1.28 |
AGMH'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 AGMH:
cost_of_equity (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.05) + 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.