CIIX WACC - Weighted Average Cost of Capital
The WACC of ChineseInvestors.com Inc (CIIX) is 5.7%.
| Range | Selected | |
| Cost of equity | 1799.3% - 2846.9% | 2323.1% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.2% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 423.62 | 542.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 1799.3% | 2846.9% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1119.23 | 1119.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.2% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CIIX | ChineseInvestors.com Inc | 1119.23 | 1.05 | 0 |
| AGMH | AGM Group Holdings Inc | 1.12 | 2.23 | 1.23 |
| DFIN | Donnelley Financial Solutions Inc | 0.08 | 1.24 | 1.17 |
| FDS | Factset Research Systems Inc | 0.08 | 0.6 | 0.56 |
| MSCI | MSCI Inc | 0.1 | 0.82 | 0.77 |
| QMCI | QuoteMedia Inc | 1.07 | 0.33 | 0.18 |
| SPGI | S&P Global Inc | 0.07 | 0.88 | 0.84 |
| VALU | Value Line Inc | 0.86 | 0.42 | 0.26 |
| AFN.L | ADVFN PLC | 0.01 | 0.45 | 0.45 |
| AOL.WA | Analizy Online SA | 0 | 0.76 | 0.76 |
| Low | High | |
| Unlevered beta | 0.52 | 0.76 |
| Relevered beta | 631.78 | 809.24 |
| Adjusted relevered beta | 423.62 | 542.52 |
CIIX'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 CIIX:
cost_of_equity (2,323.10%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (423.62) + 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.