The WACC of Argentum 47 Inc (ARGQ) is 3.9%.
Range | Selected | |
Cost of equity | 3.1% - 19.0% | 11.05% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.7% - 4.1% | 3.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | -2.78 | 0.38 |
Additional risk adjustments | 12.0% | 12.5% |
Cost of equity | 3.1% | 19.0% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 31.32 | 31.32 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.7% | 4.1% |
Selected WACC | 3.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ARGQ | Argentum 47 Inc | 31.32 | 0.36 | 0.02 |
ASFT | AppSoft Technologies Inc | 0.39 | -0.16 | -0.12 |
GCAN | Greater Cannabis Company Inc | 2.21 | -1.27 | -0.49 |
HADV | Health Advance Inc | 0.62 | -1.42 | -0.98 |
HAON | Halitron Inc | 156.96 | 0 | 0 |
ISFT.CN | ICEsoft Technologies Canada Corp | 0.15 | -0.73 | -0.66 |
RGMP | Regnum Corp | 11.52 | 0.71 | 0.08 |
USAQ | USA Equities Corp | 0.75 | 1.52 | 0.98 |
Low | High | |
Unlevered beta | -0.19 | 0 |
Relevered beta | -4.64 | 0.07 |
Adjusted relevered beta | -2.78 | 0.38 |
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 ARGQ:
cost_of_equity (11.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-2.78) + risk_adjustments (12.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.