CCWF WACC - Weighted Average Cost of Capital
The WACC of Church & Crawford Inc (CCWF) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.6% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.6% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CCWF | Church & Crawford Inc | 1.17 | -0.54 | -0.29 |
| ADMG | Adamant DRI Processing and Minerals Group | 0 | -0.38 | -0.38 |
| GCCC.V | GCC Global Capital Corp | 4.35 | 1.09 | 0.26 |
| GWSN | Gulf West Security Network Inc | 937720 | -2.09 | 0 |
| NTPY | Netpay International Inc | 54.41 | -0.55 | -0.01 |
| PRKV | ParkVida Group Inc | 0.09 | 0.5 | 0.47 |
| SLTN | Silverton Energy Inc | 0 | 1.88 | 1.88 |
| TIP.H.V | Tyner Resources Ltd | 0.08 | 0.06 | 0.06 |
| ZENO | Zenosense Inc | 18.93 | -0.27 | -0.02 |
| Low | High | |
| Unlevered beta | -0.01 | 0.05 |
| Relevered beta | 0 | 0.24 |
| Adjusted relevered beta | 0.33 | 0.49 |
CCWF'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 CCWF:
cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.