COIN.V WACC - Weighted Average Cost of Capital
The WACC of Coin Hodl Inc (COIN.V) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.1% | 6.4% |
| Tax rate | 2.6% - 4.6% | 3.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.1% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.35 | 0.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.1% |
| Tax rate | 2.6% | 4.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.1% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| COIN.V | Coin Hodl Inc | 0.01 | -0.06 | -0.06 |
| BEGI | Blackstar Enterprise Group Inc | 0.44 | -0.28 | -0.2 |
| GBC.CN | Greenbank Capital Inc | 2.62 | 0.35 | 0.1 |
| IGEX | Indo Global Exchange(s) Pte Ltd | 0.07 | 0.32 | 0.3 |
| LGHL | Lion Group Holding Ltd | 1.03 | -0.3 | -0.15 |
| NTFL | Network 1 Financial Group Inc | 0.2 | -184.79 | -154.94 |
| SIEB | Siebert Financial Corp | 0.99 | 1.05 | 0.54 |
| SRL | Scully Royalty Ltd | 0.3 | 0.31 | 0.24 |
| WSFL | Woodstock Holdings Inc | 3380.65 | -0.91 | 0 |
| Low | High | |
| Unlevered beta | -0.05 | 0.08 |
| Relevered beta | 0.03 | 0.06 |
| Adjusted relevered beta | 0.35 | 0.37 |
COIN.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 COIN.V:
cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.