The WACC of American Rebel Holdings Inc (AREB) is 8.1%.
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% - 10.8% | 8.1% |
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 | 0.73 | 0.73 |
Cost of debt | 7.0% | 22.2% |
After-tax WACC | 5.3% | 10.8% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AREB | American Rebel Holdings Inc | 0.73 | -29.02 | -18.89 |
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 | 9.76 | 1.52 | 0.19 |
CANQF | CanaQuest Medical Corp | 0.46 | -0.42 | -0.31 |
SAI.H.V | Sunshine Agri Tech Inc | 0.17 | 0.13 | 0.12 |
UVFT | UV Flu Technologies Inc | 23.46 | 0.45 | 0.02 |
Low | High | |
Unlevered beta | -0.18 | 0.08 |
Relevered beta | 0 | 0.04 |
Adjusted relevered beta | 0.33 | 0.36 |
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.