ENZC
Enzolytics Inc
Price:  
USD
Volume:  
4,711,730
United States | Professional, Scientific, and Technical Services

ENZC WACC - Weighted Average Cost of Capital

The WACC of Enzolytics Inc (ENZC) is 7.5%.

The Cost of Equity of Enzolytics Inc (ENZC) is 7.8%.
The Cost of Debt of Enzolytics Inc (ENZC) is 5%.

RangeSelected
Cost of equity5.7% - 9.9%7.8%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC5.6% - 9.4%7.5%
WACC

ENZC WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.40.89
Additional risk adjustments0.0%0.5%
Cost of equity5.7%9.9%
Tax rate26.2%27.0%
Debt/Equity ratio
0.080.08
Cost of debt5.0%5.0%
After-tax WACC5.6%9.4%
Selected WACC7.5%

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.