ESS.V WACC - Weighted Average Cost of Capital
The WACC of Esstra Industries Inc (ESS.V) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 9.0% | 7.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 6.3% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 9.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 6.3% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ESS.V | Esstra Industries Inc | 0.01 | -2.86 | -2.84 |
| CGRA | Cgrowth Capital Inc | 0.01 | 0.25 | 0.25 |
| ESGW.V | ESG Global Impact Capital Inc | 0.06 | 1.02 | 0.98 |
| FNR.V | 49 North Resources Inc | 1.84 | 0.3 | 0.13 |
| GLAE | Glassbridge Enterprises Inc | 5.87 | 0.15 | 0.03 |
| IDEA | Aeon Ventures Inc | 0.3 | -1.14 | -0.93 |
| JAGR | Green Street Capital Corp | 25.66 | -21.33 | -1.08 |
| SCGX | GTEK Industries Inc | 0.01 | -0.4 | -0.4 |
| VTNA | Vetanova Inc | 11.61 | 0 | 0 |
| WP.V | Western Pacific Trust Co | 0.23 | 0.88 | 0.76 |
| Low | High | |
| Unlevered beta | -0.16 | 0.07 |
| Relevered beta | 0 | 0.52 |
| Adjusted relevered beta | 0.33 | 0.68 |
ESS.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 ESS.V:
cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * 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.