BICB WACC - Weighted Average Cost of Capital
The WACC of Biocube Inc (BICB) is 3.8%.
| Range | Selected | |
| Cost of equity | 5.5% - 12.8% | 9.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 3.9% | 3.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.35 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 12.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 43.77 | 43.77 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 3.9% |
| Selected WACC | 3.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BICB | Biocube Inc | 43.77 | -0.74 | -0.02 |
| AUSI | Aura Systems Inc | 0.6 | 0.53 | 0.37 |
| CHGI | China Carbon Graphite Group Inc | 28.91 | 1.35 | 0.06 |
| CYBL | Cyberlux Corp | 0.23 | 1.72 | 1.48 |
| GNAL | Generation Alpha Inc | 529.78 | 0.78 | 0 |
| LRSV | Link Reservations Inc | 0.32 | -1.57 | -1.28 |
| NHHH.V | FuelPositive Corp | 0.02 | 0.98 | 0.96 |
| RGSEQ | Real Goods Solar Inc | 0.03 | 1.08 | 1.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.49 |
| Relevered beta | 0.03 | 1.63 |
| Adjusted relevered beta | 0.35 | 1.42 |
BICB'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 BICB:
cost_of_equity (9.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.