AWWI
Alpha Wastewater Inc
Price:  
0.00 
USD
Volume:  
28,420.00
Canada | N/A
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AWWI WACC - Weighted Average Cost of Capital

The WACC of Alpha Wastewater Inc (AWWI) is 3.7%.

The Cost of Equity of Alpha Wastewater Inc (AWWI) is 6.65%.
The Cost of Debt of Alpha Wastewater Inc (AWWI) is 5.00%.

Range Selected
Cost of equity 4.10% - 9.20% 6.65%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 3.7% 3.7%
WACC

AWWI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.04 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.10% 9.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 74.81 74.81
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 3.7%
Selected WACC 3.7%

AWWI'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 AWWI:

cost_of_equity (6.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.04) + 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.