ETER WACC - Weighted Average Cost of Capital
The WACC of Enterra Corp (ETER) is 4.7%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.8% | 5.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.2% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.22 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.2% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ETER | Enterra Corp | 1.18 | -0.46 | -0.25 |
| ARGQ | Argentum 47 Inc | 31.32 | 0.36 | 0.02 |
| ASFT | AppSoft Technologies Inc | 0.39 | -0.16 | -0.12 |
| HADV | Health Advance Inc | 0.62 | -1.42 | -0.98 |
| IMTV | Imagine All The People Inc | 91.3 | 0 | 0 |
| ISFT.CN | ICEsoft Technologies Canada Corp | 0.15 | -0.73 | -0.66 |
| RAD.CN | Radial Research Corp | 1.76 | -1.85 | -0.81 |
| RGMP | Regnum Corp | 11.52 | 0.71 | 0.08 |
| USAQ | USA Equities Corp | 0.75 | 1.52 | 0.98 |
| WRIT | WRIT Media Group Inc | 0.55 | 0.77 | 0.55 |
| Low | High | |
| Unlevered beta | -0.17 | 0.01 |
| Relevered beta | -0.16 | 0.01 |
| Adjusted relevered beta | 0.22 | 0.34 |
ETER'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 ETER:
cost_of_equity (5.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.22) + 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.