GRCU WACC - Weighted Average Cost of Capital
The WACC of Green Cures & Botanical Distribution Inc (GRCU) is 4.4%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 4.6% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.97 | 2.97 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 4.6% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GRCU | Green Cures & Botanical Distribution Inc | 2.97 | 0.15 | 0.05 |
| DROP | Fuse Science Inc | 3.36 | 1.19 | 0.35 |
| EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.12 | 0.12 |
| MIMI.V | Mimi's Rock Corp | 1.89 | 0.41 | 0.17 |
| NUVM | NuVim Inc | 0.55 | -0.95 | -0.67 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| TDNT | Trident Brands Inc | 5976.95 | -1.27 | 0 |
| VPI.V | Vitality Products Inc | 0 | -1.11 | -1.11 |
| YGYI | Youngevity International Inc | 67.57 | 0.95 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.08 |
| Relevered beta | 0.06 | 0.24 |
| Adjusted relevered beta | 0.37 | 0.49 |
GRCU'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 GRCU:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.