ASNB WACC - Weighted Average Cost of Capital
The WACC of Ekimas Corp (ASNB) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.1% | 6.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.4% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.25 | 0.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.4% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASNB | Ekimas Corp | 1.09 | -0.42 | -0.24 |
| HWKE | Hawkeye Systems Inc | 2.86 | -0.66 | -0.22 |
| IOMT | Isomet Corp | 0.17 | -0.15 | -0.14 |
| MEGH | Megalith Corp | 216154 | -0.14 | 0 |
| MNTR | Mentor Capital Inc | 0.99 | 0.46 | 0.27 |
| RCHN | Rouchon Industries Inc | 0.13 | 0.01 | 0.01 |
| SMEV | Simulated Environment Concepts Inc | 0.8 | -1.31 | -0.83 |
| Low | High | |
| Unlevered beta | -0.18 | -0.05 |
| Relevered beta | -0.12 | -0.01 |
| Adjusted relevered beta | 0.25 | 0.32 |
ASNB'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 ASNB:
cost_of_equity (6.25%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.25) + 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.