EHVVF WACC - Weighted Average Cost of Capital
The WACC of Ehave Inc (EHVVF) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.3% | 6.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 5.1% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.23 | 2.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 5.1% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EHVVF | Ehave Inc | 2.23 | 173.29 | 65.93 |
| ENTI | Encounter Technologies Inc | 7.66 | 0 | 0 |
| EXPL | Endurance Exploration Group Inc | 3.23 | 0 | 0 |
| FNAM | Evolutionary Genomics Inc | 2810.62 | -0.73 | 0 |
| ITOX | Iiot-Oxys Inc | 1.24 | 0.85 | 0.45 |
| LGBS | Legends Business Group Inc | 303.24 | 0 | 0 |
| RJDG | RJD Green Inc | 0.15 | 0.77 | 0.7 |
| SYNJ | Day Tradexchange Inc | 1334.3 | -1.32 | 0 |
| TMED.CN | EGF Theramed Health Corp | 1.47 | 0.85 | 0.41 |
| UNEX | Unex Holdings Inc | 0 | 1.09 | 1.09 |
| Low | High | |
| Unlevered beta | 0 | 0.42 |
| Relevered beta | 0 | 0.43 |
| Adjusted relevered beta | 0.33 | 0.62 |
EHVVF'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 EHVVF:
cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.