DRWN WACC - Weighted Average Cost of Capital
The WACC of Quantum Medical Transport Inc (DRWN) is 32.7%.
| Range | Selected | |
| Cost of equity | 57694.3% - 89807.9% | 73751.1% |
| Tax rate | 5.1% - 7.3% | 6.2% |
| Cost of debt | 23.9% - 40.5% | 32.2% |
| WACC | 24.6% - 40.7% | 32.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 12541.39 | 16036.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 57694.3% | 89807.9% |
| Tax rate | 5.1% | 7.3% |
| Debt/Equity ratio | 28763.14 | 28763.14 |
| Cost of debt | 23.9% | 40.5% |
| After-tax WACC | 24.6% | 40.7% |
| Selected WACC | 32.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DRWN | Quantum Medical Transport Inc | 28763.14 | 0 | 0 |
| ENZ | Enzo Biochem Inc | 0.01 | 1.9 | 1.88 |
| IDXG | Interpace Biosciences Inc | 1.3 | 1.8 | 0.81 |
| IOM.V | Assure Holdings Corp | 0.14 | 1.89 | 1.68 |
| NPTH.V | NeuPath Health Inc | 0.8 | 1.12 | 0.64 |
| PMD | Psychemedics Corp | 0.02 | 1.03 | 1.02 |
| PTQ.V | Protech Home Medical Corp | 0.15 | 1.94 | 1.71 |
| STRR | Star Equity Holdings Inc | 1.75 | 0.67 | 0.25 |
| XGN | Exagen Inc | 0.14 | 0.83 | 0.74 |
| Low | High | |
| Unlevered beta | 0.75 | 0.98 |
| Relevered beta | 18718 | 23934.22 |
| Adjusted relevered beta | 12541.39 | 16036.26 |
DRWN'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 DRWN:
cost_of_equity (73,751.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (12541.39) + 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.