ECM.V WACC - Weighted Average Cost of Capital
The WACC of Ecolomondo Corp (ECM.V) is 6.8%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.6% | 9.8% |
| Tax rate | 4.4% - 6.0% | 5.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 7.7% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.8 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.6% |
| Tax rate | 4.4% | 6.0% |
| Debt/Equity ratio | 1.1 | 1.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 7.7% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ECM.V | Ecolomondo Corp | 1.1 | 1.56 | 0.76 |
| ARAO | AuraSource Inc | 4538.91 | -0.28 | 0 |
| BAC.CN | Bactech Environmental Corp | 0.19 | -1.16 | -0.98 |
| BHTG | BioHiTech Global Inc | 1.59 | 1.13 | 0.45 |
| BNET | Bion Environmental Technologies Inc | 0.2 | 1.3 | 1.09 |
| BQE.V | BQE Water Inc | 0.03 | 0.38 | 0.37 |
| CREG | China Recycling Energy Corp | 0.79 | 1.48 | 0.84 |
| EWS.V | Environmental Waste International Inc | 2.54 | 1.03 | 0.3 |
| NUGL | NUGL Inc | 0.02 | -0.72 | -0.71 |
| TOMZ | TOMI Environmental Solutions Inc | 0.11 | 0.81 | 0.73 |
| Low | High | |
| Unlevered beta | 0.34 | 0.56 |
| Relevered beta | 0.7 | 1.15 |
| Adjusted relevered beta | 0.8 | 1.1 |
ECM.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 ECM.V:
cost_of_equity (9.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.