ETI.CN WACC - Weighted Average Cost of Capital
The WACC of Enviroleach Technologies Inc (ETI.CN) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.5% - 6.5% | 5.5% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.26 | 0.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 6.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ETI.CN | Enviroleach Technologies Inc | 0.15 | -5.39 | -4.85 |
| AMMJ | American Cannabis Company Inc | 2.84 | -1.45 | -0.47 |
| BIOV.CN | Biovaxys Technology Corp | 0.01 | -0.24 | -0.24 |
| CGN.CN | Cognetivity Neurosciences Ltd | 1.46 | 1.31 | 0.63 |
| CYIO | CYIOS Corp | 0.08 | -0.48 | -0.45 |
| FARM.V | Deveron Corp | 5.37 | 1.41 | 0.28 |
| INND | Innerscope Hearing Technologies Inc | 124.72 | 1.19 | 0.01 |
| MGRO.CN | MustGrow Biologics Corp | 0.01 | 1.07 | 1.06 |
| TSPG | TGI Solar Power Group Inc | 0.01 | -0.46 | -0.46 |
| ZEU.CN | Zeu Technologies Inc | 12.84 | 0.07 | 0.01 |
| Low | High | |
| Unlevered beta | -0.32 | 0.01 |
| Relevered beta | -0.1 | 0.07 |
| Adjusted relevered beta | 0.26 | 0.38 |
ETI.CN'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 ETI.CN:
cost_of_equity (5.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.26) + 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.