CRKN WACC - Weighted Average Cost of Capital
The WACC of Crown Electrokinetics Corp. (CRKN) is 8.1%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.6% | 5.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 34.9% | 20.95% |
| WACC | 4.9% - 11.4% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.2 | 0.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 7.0% | 34.9% |
| After-tax WACC | 4.9% | 11.4% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRKN | Crown Electrokinetics Corp. | 0.34 | 2.4 | 1.92 |
| ADMT | ADM Tronics Unlimited Inc | 0.11 | -0.39 | -0.36 |
| CHCC | China Chemical Corp | 2.04 | 0.26 | 0.11 |
| ETEK | Eco-Tek Group Inc | 15.74 | -1.73 | -0.14 |
| GDNP.V | Good Natured Products Inc | 34.63 | -1.11 | -0.04 |
| GLGI | Greystone Logistics Inc | 0.37 | 0.17 | 0.13 |
| GURE | Gulf Resources Inc | 0.18 | -0.66 | -0.58 |
| KBLB | Kraig Biocraft Laboratories Inc | 0.02 | 0.61 | 0.6 |
| MX.TO | Methanex Corp | 1.48 | 1.99 | 0.96 |
| PRH.V | Pearl River Holdings Ltd | 1.93 | -0.42 | -0.18 |
| SINC | Sincerity Applied Materials Holdings Corp | 0.66 | -0.53 | -0.36 |
| Low | High | |
| Unlevered beta | -0.14 | 0.11 |
| Relevered beta | -0.19 | -0.03 |
| Adjusted relevered beta | 0.2 | 0.31 |
CRKN'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 CRKN:
cost_of_equity (5.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.2) + 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.