The WACC of Agentix Corp (AGTX) is 9.3%.
Range | Selected | |
Cost of equity | 7.4% - 11.9% | 9.65% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.2% - 11.3% | 9.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.78 | 1.25 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 11.9% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.2% | 11.3% |
Selected WACC | 9.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AGTX | Agentix Corp | 0.07 | 2.75 | 2.61 |
BEV.CN | Bevcanna Enterprises Inc | 0.52 | -1.57 | -1.14 |
MYM.CN | MYM Nutraceuticals Inc | 0.01 | 0.92 | 0.92 |
NUMD | Nu-Med Plus Inc | 0.02 | 2.03 | 2 |
PILL.CN | Canntab Therapeutics Ltd | 9.46 | 1.7 | 0.22 |
PRT.CN | Plymouth Rock Technologies Inc | 0.04 | 0.12 | 0.12 |
ROSN | Rosinbomb | 0.04 | 1.19 | 1.16 |
SHRC.CN | Sharc International Systems Inc | 0.01 | 1.54 | 1.53 |
TAUG | Tauriga Sciences Inc | 1683.25 | -1.37 | 0 |
WIFI.CN | American Aires Inc | 0.02 | 1.8 | 1.77 |
YES.V | CHAR Technologies Ltd | 0.21 | 1.74 | 1.51 |
Low | High | |
Unlevered beta | 0.92 | 1.51 |
Relevered beta | 0.67 | 1.37 |
Adjusted relevered beta | 0.78 | 1.25 |
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 AGTX:
cost_of_equity (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.78) + 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.