EWLL WACC - Weighted Average Cost of Capital
The WACC of eWellness Healthcare Corp (EWLL) is 5.5%.
| Range | Selected | |
| Cost of equity | 10.9% - 68.9% | 39.9% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 5.9% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.52 | 11.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 68.9% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 73.3 | 73.3 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 5.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EWLL | eWellness Healthcare Corp | 73.3 | 45.96 | 0.62 |
| ACCD | Accolade Inc | 0.49 | -0.29 | -0.2 |
| CMPD | CompuMed Inc | 0.04 | 0.36 | 0.35 |
| CSOC | Caduceus Software Systems Corp | 0.02 | -1.1 | -1.08 |
| EKG.V | CardioComm Solutions Inc | 0.25 | -0.03 | -0.02 |
| EVH | Evolent Health Inc | 0.64 | -0.55 | -0.34 |
| HITC | Healthcare Integrated Technologies Inc | 0.01 | 0.14 | 0.14 |
| SPOM | SPO Global Inc | 13.51 | 0.8 | 0.05 |
| TDOC | Teladoc Health Inc | 1.17 | 1.02 | 0.47 |
| VGL.V | Vigil Health Solutions Inc | 0.03 | 0.57 | 0.55 |
| WORX | Scworx Corp | 0.04 | 2.03 | 1.95 |
| Low | High | |
| Unlevered beta | 0.05 | 0.35 |
| Relevered beta | 1.78 | 16.57 |
| Adjusted relevered beta | 1.52 | 11.43 |
EWLL'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 EWLL:
cost_of_equity (39.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.52) + 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.