ARSC WACC - Weighted Average Cost of Capital
The WACC of Bitcoin Crypto Currency Exchange Corp (ARSC) is 4.4%.
| Range | Selected | |
| Cost of equity | 10.5% - 29.7% | 20.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.0% - 4.9% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.45 | 4.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 29.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 20.62 | 20.62 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.0% | 4.9% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARSC | Bitcoin Crypto Currency Exchange Corp | 20.62 | -0.68 | -0.04 |
| BITK.V | Blockchaink2 Corp | 0.21 | 0.2 | 0.17 |
| BLBX | Blackboxstocks Inc | 0.02 | 1.39 | 1.38 |
| EPAZ | Auto Dataflow Inc | 8.12 | 1.56 | 0.23 |
| NETE | Net Element Inc | 0.15 | 1.91 | 1.72 |
| OCFT | OneConnect Financial Technology Co Ltd | 0.17 | 0.69 | 0.61 |
| THP.V | Totally Hip Technologies Inc | 0 | 0.95 | 0.94 |
| WODI | Wod Retail Solutions Inc | 39946.77 | -0.3 | 0 |
| SNG.WA | Synerga.Fund SA | 0.05 | -0.14 | -0.14 |
| Low | High | |
| Unlevered beta | 0.18 | 0.54 |
| Relevered beta | 1.67 | 6.12 |
| Adjusted relevered beta | 1.45 | 4.43 |
ARSC'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 ARSC:
cost_of_equity (20.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.45) + 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.