ENTI WACC - Weighted Average Cost of Capital
The WACC of Encounter Technologies Inc (ENTI) is 4.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 9.3% | 7.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.9% - 4.3% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 9.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 7.66 | 7.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.9% | 4.3% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENTI | Encounter Technologies Inc | 7.66 | 0 | 0 |
| CSUI | Cannabis Suisse Corp | 0.25 | 0.03 | 0.02 |
| EXPL | Endurance Exploration Group Inc | 3.23 | 0 | 0 |
| FNAM | Evolutionary Genomics Inc | 2810.62 | -0.73 | 0 |
| ITOX | Iiot-Oxys Inc | 0.89 | 1.19 | 0.72 |
| LGBS | Legends Business Group Inc | 303.24 | 0 | 0 |
| RJDG | RJD Green Inc | 0.17 | 0.73 | 0.65 |
| SYNJ | Day Tradexchange Inc | 1334.3 | -1.32 | 0 |
| TMED.CN | EGF Theramed Health Corp | 2 | 0.55 | 0.22 |
| UNEX | Unex Holdings Inc | 0 | 1.09 | 1.09 |
| Low | High | |
| Unlevered beta | 0 | 0.1 |
| Relevered beta | 0 | 0.67 |
| Adjusted relevered beta | 0.33 | 0.78 |
ENTI'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 ENTI:
cost_of_equity (7.35%) = 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.