ARGQ
Argentum 47 Inc
Price:  
0.01 
USD
Volume:  
6,290
United Arab Emirates | Information

ARGQ WACC - Weighted Average Cost of Capital

The WACC of Argentum 47 Inc (ARGQ) is 3.9%.

The Cost of Equity of Argentum 47 Inc (ARGQ) is 11.05%.
The Cost of Debt of Argentum 47 Inc (ARGQ) is 5%.

RangeSelected
Cost of equity3.1% - 19.0%11.05%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC3.7% - 4.1%3.9%
WACC

ARGQ WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta-2.780.38
Additional risk adjustments12.0%12.5%
Cost of equity3.1%19.0%
Tax rate26.2%27.0%
Debt/Equity ratio
31.3231.32
Cost of debt5.0%5.0%
After-tax WACC3.7%4.1%
Selected WACC3.9%

ARGQ WACC - Detailed calculations of Beta

LowHigh
Unlevered beta-0.190
Relevered beta-4.640.07
Adjusted relevered beta-2.780.38

ARGQ'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 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.