The WACC of Bespoke Extracts Inc (BSPK) is 5.7%.
Range | Selected | |
Cost of equity | 5.6% - 8.8% | 7.2% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.8% - 6.6% | 5.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.37 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.6% | 8.8% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.71 | 0.71 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.8% | 6.6% |
Selected WACC | 5.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BSPK | Bespoke Extracts Inc | 0.71 | 1.1 | 0.72 |
CHM.CN | Chemistree Technology Inc | 2.06 | -0.31 | -0.12 |
CPMD | CannaPharmaRx Inc | 2.71 | -1.06 | -0.36 |
GNOM.CN | Gnomestar Craft Inc | 2.36 | 1.84 | 0.68 |
KAYS | Kaya Holdings Inc | 5.86 | 0.33 | 0.06 |
MLCL.CN | Molecule Holdings Inc | 10.9 | 1.39 | 0.15 |
POT.CN | Weekend Unlimited Industries Inc | 0.02 | 1.5 | 1.48 |
RSPI | RespireRx Pharmaceuticals Inc | 13.15 | -1.12 | -0.11 |
SNES | Senestech Inc | 0.03 | 1.84 | 1.8 |
ULUR | ULURU Inc | 0.09 | 1.62 | 1.52 |
Low | High | |
Unlevered beta | 0.12 | 0.69 |
Relevered beta | 0.06 | 0.55 |
Adjusted relevered beta | 0.37 | 0.7 |
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 BSPK:
cost_of_equity (7.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.