AREB WACC - Weighted Average Cost of Capital
The WACC of American Rebel Holdings Inc (AREB) is 8.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.9% | 6.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 22.2% | 14.6% |
| WACC | 5.3% - 11.9% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.17 | 1.17 |
| Cost of debt | 7.0% | 22.2% |
| After-tax WACC | 5.3% | 11.9% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AREB | American Rebel Holdings Inc | 1.17 | -31.7 | -17.11 |
| AREV.CN | Arev Nanotec Brands Inc | 0.01 | -1.08 | -1.08 |
| ASIA.CN | Asia Green Biotechnology Corp | 0.65 | 0.39 | 0.26 |
| ASTI.CN | Aquarius Surgical Technologies Inc | 14.64 | 0.84 | 0.07 |
| ATHR.CN | Aether Catalyst Solutions Inc | 0.07 | 1.12 | 1.07 |
| CANQF | CanaQuest Medical Corp | 0.43 | -0.61 | -0.47 |
| SAI.H.V | Sunshine Agri Tech Inc | 0.07 | -0.73 | -0.69 |
| UVFT | UV Flu Technologies Inc | 23.46 | 0.5 | 0.03 |
| Low | High | |
| Unlevered beta | -0.51 | 0.04 |
| Relevered beta | 0 | 0.04 |
| Adjusted relevered beta | 0.33 | 0.36 |
AREB'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 AREB:
cost_of_equity (6.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.