ECM.V WACC - Weighted Average Cost of Capital
The WACC of Ecolomondo Corp (ECM.V) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.3% | 8.6% |
| Tax rate | 4.4% - 6.0% | 5.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.59 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.3% |
| Tax rate | 4.4% | 6.0% |
| Debt/Equity ratio | 1.07 | 1.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ECM.V | Ecolomondo Corp | 1.07 | 1.53 | 0.76 |
| ARAO | AuraSource Inc | 4538.91 | -0.28 | 0 |
| BAC.CN | Bactech Environmental Corp | 0.19 | -1.25 | -1.06 |
| BHTG | BioHiTech Global Inc | 1.59 | 1.13 | 0.45 |
| BNET | Bion Environmental Technologies Inc | 0.23 | 1.42 | 1.17 |
| BQE.V | BQE Water Inc | 0.03 | 0.39 | 0.38 |
| CREG | China Recycling Energy Corp | 0.76 | 1.49 | 0.86 |
| EWK.V | Earthworks Industries Inc | 0.86 | 0.04 | 0.02 |
| EWS.V | Environmental Waste International Inc | 2.54 | 1.03 | 0.3 |
| NUGL | NUGL Inc | 0.02 | -0.7 | -0.69 |
| Low | High | |
| Unlevered beta | 0.19 | 0.41 |
| Relevered beta | 0.39 | 0.82 |
| Adjusted relevered beta | 0.59 | 0.88 |
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 (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.