ENZC WACC - Weighted Average Cost of Capital
The WACC of Enzolytics Inc (ENZC) is 7.5%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.9% | 7.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 9.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 9.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENZC | Enzolytics Inc | 0.08 | -0.41 | -0.38 |
| ABVC | American Brivision (Holding) Corp | 0.03 | 1.54 | 1.51 |
| CISO | Cerberus Cyber Sentinel Corp | 0.33 | 1.2 | 0.97 |
| CYIO | CYIOS Corp | 0.09 | -0.65 | -0.61 |
| FUST | Fuse Group Holding Inc | 0.04 | 0.04 | 0.04 |
| INND | Innerscope Hearing Technologies Inc | 264.06 | 1.66 | 0.01 |
| MGRO.CN | MustGrow Biologics Corp | 0.01 | 1.07 | 1.06 |
| RAMM.CN | Ramm Pharma Corp | 0.16 | 1.6 | 1.43 |
| TAAL.CN | Taal Distributed Information Technologies Inc | 0.33 | 0.84 | 0.68 |
| VIVK | Vivakor Inc | 1.86 | 0.32 | 0.14 |
| Low | High | |
| Unlevered beta | 0.1 | 0.79 |
| Relevered beta | 0.1 | 0.84 |
| Adjusted relevered beta | 0.4 | 0.89 |
ENZC'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 ENZC:
cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.