BQE.V WACC - Weighted Average Cost of Capital
The WACC of BQE Water Inc (BQE.V) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.1% | 6.8% |
| Tax rate | 7.5% - 13.2% | 10.35% |
| Cost of debt | 4.5% - 4.8% | 4.65% |
| WACC | 5.5% - 8.0% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.1% |
| Tax rate | 7.5% | 13.2% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.5% | 4.8% |
| After-tax WACC | 5.5% | 8.0% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BQE.V | BQE Water Inc | 0.03 | 0.38 | 0.37 |
| APGI | American Power Group Corp | 0.37 | -0.18 | -0.13 |
| BAC.CN | Bactech Environmental Corp | 0.19 | -1.16 | -0.98 |
| BHTG | BioHiTech Global Inc | 1.59 | 1.13 | 0.46 |
| CREG | China Recycling Energy Corp | 0.79 | 1.48 | 0.86 |
| EWK.V | Earthworks Industries Inc | 0.86 | -0.24 | -0.13 |
| GARB | Garb Oil & Power Corp | 72.4 | 0 | 0 |
| GEVI | General Environmental Management Inc | 0.01 | 1.06 | 1.05 |
| SRCL | Stericycle Inc | 0.23 | 0.3 | 0.25 |
| USRI | USA Recycling Industries Inc | 0.27 | -0.19 | -0.15 |
| Low | High | |
| Unlevered beta | -0.05 | 0.3 |
| Relevered beta | 0 | 0.3 |
| Adjusted relevered beta | 0.33 | 0.53 |
BQE.V'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 BQE.V:
cost_of_equity (6.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.