GWS.CN WACC - Weighted Average Cost of Capital
The WACC of Global Wellness Strategies Inc (GWS.CN) is 25.1%.
| Range | Selected | |
| Cost of equity | 23.1% - 27.6% | 25.35% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 22.9% - 27.4% | 25.1% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 3.55 | 3.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 23.1% | 27.6% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 22.9% | 27.4% |
| Selected WACC | 25.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GWS.CN | Global Wellness Strategies Inc | 0.01 | 4.77 | 4.73 |
| Low | High | |
| Unlevered beta | 4.73 | 4.73 |
| Relevered beta | 4.81 | 4.81 |
| Adjusted relevered beta | 3.55 | 3.55 |
GWS.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 GWS.CN:
cost_of_equity (25.35%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (3.55) + 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.