AZDDQ WACC - Weighted Average Cost of Capital
The WACC of Azure Dynamics Corp (AZDDQ) is 4.6%.
| Range | Selected | |
| Cost of equity | 67.4% - 213.7% | 140.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 4.0% - 5.2% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 13.81 | 37.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 67.4% | 213.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1543.94 | 1543.94 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 4.0% | 5.2% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AZDDQ | Azure Dynamics Corp | 1543.94 | -36.02 | -0.03 |
| ESWW | Environmental Solutions Worldwide Inc | 42548.29 | -0.56 | 0 |
| FSCR | Federal Screw Works | 1.22 | 0.06 | 0.03 |
| KNDI | Kandi Technologies Group Inc | 0.79 | 0.4 | 0.25 |
| OMTK | Omnitek Engineering Corp | 0.59 | 0.1 | 0.07 |
| SSA.V | Spectra Products Inc | 0.08 | 0.67 | 0.64 |
| SYPR | Sypris Solutions Inc | 0.34 | 0.03 | 0.02 |
| TRBD | Turbodyne Technologies Inc | 729.16 | 0 | 0 |
| VC | Visteon Corp | 0.13 | 0.52 | 0.47 |
| WARM | Cool Technologies Inc | 4232.52 | 0.05 | 0 |
| Low | High | |
| Unlevered beta | 0.01 | 0.05 |
| Relevered beta | 20.12 | 55.18 |
| Adjusted relevered beta | 13.81 | 37.3 |
AZDDQ'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 AZDDQ:
cost_of_equity (140.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (13.81) + 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.