GAHC WACC - Weighted Average Cost of Capital
The WACC of Global Arena Holding Inc (GAHC) is 4.7%.
| Range | Selected | |
| Cost of equity | 35.3% - 62.2% | 48.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 5.3% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 6.84 | 10.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 35.3% | 62.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 28.34 | 28.34 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 5.3% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GAHC | Global Arena Holding Inc | 28.34 | 82.1 | 3.79 |
| BHTG | BioHiTech Global Inc | 1.59 | 1.13 | 0.52 |
| CGRW | Cannagrow Holdings Inc | 1.29 | 1.96 | 1.01 |
| ETK.H.V | Envirotek Remediation Inc | 0.22 | 1.09 | 0.94 |
| MATW | Matthews International Corp | 1.03 | 0.91 | 0.52 |
| NMSCA | Nutrition Management Services Co | 1.64 | -1.5 | -0.68 |
| SFRX | Seafarer Exploration Corp | 0.08 | 0.36 | 0.34 |
| VSEC | VSE Corp | 0.16 | 1.38 | 1.24 |
| VVI | Viad Corp | 0.5 | 1.26 | 0.92 |
| WHLM | Wilhelmina International Inc | 0.01 | -0.2 | -0.2 |
| SUL.WA | Summa Linguae Technologies SA | 0.08 | 0.29 | 0.28 |
| Low | High | |
| Unlevered beta | 0.52 | 0.92 |
| Relevered beta | 9.72 | 14.79 |
| Adjusted relevered beta | 6.84 | 10.24 |
GAHC'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 GAHC:
cost_of_equity (48.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (6.84) + 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.