The WACC of Darkpulse Inc (DPLS) is 4.8%.
Range | Selected | |
Cost of equity | 4.6% - 6.8% | 5.7% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.7% - 5.9% | 4.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.15 | 0.35 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 6.8% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1.15 | 1.15 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.7% | 5.9% |
Selected WACC | 4.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
DPLS | Darkpulse Inc | 1.15 | -0.36 | -0.2 |
CRGS | CurAegis Technologies Inc | 1843.54 | 1.06 | 0 |
DGLY | Digital Ally Inc | 38.12 | 1.66 | 0.06 |
IMTE | Integrated Media Technology Ltd | 1.76 | -1.02 | -0.45 |
LPS.V | Legend Power Systems Inc | 0.02 | 0.91 | 0.9 |
MACE | Mace Security International Inc | 1.74 | -0.24 | -0.11 |
SMIT | Schmitt Industries Inc | 40.78 | 0.98 | 0.03 |
SOBR | Sobr Safe Inc | 0.5 | 1.92 | 1.41 |
TEST.V | FluroTech Ltd | 0.27 | -0.59 | -0.49 |
Low | High | |
Unlevered beta | -0.09 | 0.03 |
Relevered beta | -0.27 | 0.03 |
Adjusted relevered beta | 0.15 | 0.35 |
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 DPLS:
cost_of_equity (5.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.15) + 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.