Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	4.68	11.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.4%	68.0%

Tax rate	26.2%	27.0%
Debt/Equity ratio	46.79	46.79
Cost of debt	5.0%	5.0%

After-tax WACC	4.1%	5.0%


Selected WACC	4.6%

GOEV WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

GOEV	Canoo Inc	46.79	2.59	0.07
ELCR	Electric Car Company Inc	87.26	0	0
F	Ford Motor Co	3.69	0.69	0.19
FSR	Fisker Inc	9.59	0.95	0.12
LI	Li Auto Inc.	0.01	0.91	0.9
THO	Thor Industries Inc	0.28	0.91	0.76
WGO	Winnebago Industries Inc	0.69	0.68	0.45
XPEV	Xpeng Inc	0.16	0.81	0.72
AML.L	Aston Martin Lagonda Global Holdings PLC	1.84	0.77	0.33
KABE B.ST	KABE Group AB	0.03	0.02	0.02
SCT.LS	Toyota Caetano Portugal SA	0.55	0.16	0.11

	Low	High

Unlevered beta	0.12	0.33
Relevered beta	6.49	16.33
Adjusted relevered beta	4.68	11.27

GOEV'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 GOEV:

cost_of_equity (46.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.68) + 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.