EAC.V WACC - Weighted Average Cost of Capital
The WACC of Earth Alive Clean Technologies Inc (EAC.V) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.1% | 7.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 8.2% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 8.2% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EAC.V | Earth Alive Clean Technologies Inc | 0.21 | 3.6 | 3.12 |
| AMPG | Amplitech Group Inc | 0 | 0.86 | 0.86 |
| BRSF | Brain Scientific Inc | 2.98 | -0.13 | -0.04 |
| BUX.CN | BioMark Diagnostics Inc | 0.03 | -0.36 | -0.35 |
| PILL.CN | Canntab Therapeutics Ltd | 9.46 | 1.7 | 0.22 |
| RVIV | Reviv3 Procare Co | 0 | 0.07 | 0.07 |
| SIRE.CN | Sire Bioscience Inc | 0.09 | 1.08 | 1.01 |
| USDR | UAS Drone Corp | 0.06 | -1.03 | -0.99 |
| USLG | US Lighting Group Inc | 13.99 | 0.44 | 0.04 |
| WIFI.CN | American Aires Inc | 0.04 | 1.73 | 1.67 |
| YES.V | CHAR Technologies Ltd | 0.17 | 1.66 | 1.47 |
| Low | High | |
| Unlevered beta | 0.07 | 0.86 |
| Relevered beta | 0.06 | 0.55 |
| Adjusted relevered beta | 0.37 | 0.7 |
EAC.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 EAC.V:
cost_of_equity (7.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.