CDRBQ WACC - Weighted Average Cost of Capital
The WACC of Code Rebel Corp (CDRBQ) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.7% | 6.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.2% - 5.9% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.2% | 5.9% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CDRBQ | Code Rebel Corp | 1.12 | 21.26 | 11.69 |
| APPZ | Monster Arts Inc | 345.02 | 0 | 0 |
| APTY | APT Systems Inc | 0.38 | 0.26 | 0.21 |
| AVOI | Advanced Voice Recognition Systems Inc | 0 | -0.88 | -0.88 |
| GFGU | GetFugu Inc | 973.34 | 0 | 0 |
| MYSZ | My Size Inc | 0.09 | 0.48 | 0.45 |
| RIHT | Rightscorp Inc | 0.01 | -0.3 | -0.29 |
| Low | High | |
| Unlevered beta | 0 | 0.12 |
| Relevered beta | 0 | 0 |
| Adjusted relevered beta | 0.33 | 0.33 |
CDRBQ'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 CDRBQ:
cost_of_equity (6.05%) = 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.