BLPG WACC - Weighted Average Cost of Capital
The WACC of Blue Line Protection Group Inc (BLPG) is 7.1%.
| Range | Selected | |
| Cost of equity | 9.7% - 16.0% | 12.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.5% - 6.7% | 5.6% |
| WACC | 5.4% - 8.7% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.26 | 1.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 16.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.95 | 1.95 |
| Cost of debt | 4.5% | 6.7% |
| After-tax WACC | 5.4% | 8.7% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BLPG | Blue Line Protection Group Inc | 1.95 | 1 | 0.41 |
| ADT | ADT Inc | 1.07 | 0.52 | 0.29 |
| BCO | Brinks Co | 1.03 | 0.66 | 0.38 |
| BNET | Bion Environmental Technologies Inc | 0.43 | 1.88 | 1.43 |
| CANN | General Cannabis Corp | 4.65 | -0.64 | -0.15 |
| CREG | China Recycling Energy Corp | 0.27 | 1.45 | 1.22 |
| CXW | Corecivic Inc | 0.41 | 1.48 | 1.14 |
| NNRI | NNRF Inc | 0.05 | 1.86 | 1.79 |
| AKYHO.IS | Akdeniz Yatirim Holding AS | 0.01 | 0.96 | 0.95 |
| ORMESTER.BD | Ormester Vagyonvedelmi Nyrt | 0.03 | 0.69 | 0.68 |
| Low | High | |
| Unlevered beta | 0.57 | 1.02 |
| Relevered beta | 1.39 | 2.48 |
| Adjusted relevered beta | 1.26 | 1.99 |
BLPG'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 BLPG:
cost_of_equity (12.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.26) + 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.