CSX.V WACC - Weighted Average Cost of Capital
The WACC of Clean Seed Capital Group Ltd (CSX.V) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.7% | 6.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.4% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.4% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CSX.V | Clean Seed Capital Group Ltd | 0.67 | -0.03 | -0.02 |
| AFI.CN | Affinor Growers Inc | 0.35 | 2.21 | 1.76 |
| ARTW | Art's Way Manufacturing Co Inc | 0.46 | 0.7 | 0.53 |
| BUI.TO | Buhler Industries Inc | 0.22 | 0.75 | 0.65 |
| DDDX | 3DX Industries Inc | 2.77 | -0.25 | -0.08 |
| HYFM | Hydrofarm Holdings Group Inc | 7.28 | 2.19 | 0.35 |
| JKSM | Jacksam Corp | 3.93 | -1.03 | -0.27 |
| KNOS | Kronos Advanced Technologies Inc | 0.06 | 1.58 | 1.52 |
| LNN | Lindsay Corp | 0.07 | 0.85 | 0.8 |
| UAVS | Ageagle Aerial Systems Inc | 0.13 | 1.88 | 1.72 |
| Low | High | |
| Unlevered beta | 0.45 | 0.71 |
| Relevered beta | -0.01 | 0.19 |
| Adjusted relevered beta | 0.32 | 0.46 |
CSX.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 CSX.V:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.