The WACC of Gulf West Security Network Inc (GWSN) is 4.1%.
Range | Selected | |
Cost of equity | 153754.3% - 700186.1% | 426970.2% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.9% - 4.4% | 4.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 33424 | 125032.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 153754.3% | 700186.1% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 937720 | 937720 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.9% | 4.4% |
Selected WACC | 4.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
GWSN | Gulf West Security Network Inc | 937720 | -2.09 | 0 |
GCCC.V | GCC Global Capital Corp | 4.35 | 1.09 | 0.26 |
NTPY | Netpay International Inc | 54.41 | -0.55 | -0.01 |
PRKV | ParkVida Group Inc | 0.09 | 0.5 | 0.47 |
STQN | Strategic Acquisitions Inc | 0.59 | 0.26 | 0.18 |
TIP.H.V | Tyner Resources Ltd | 0.08 | 0.35 | 0.33 |
ZENO | Zenosense Inc | 18.93 | -0.27 | -0.02 |
Low | High | |
Unlevered beta | 0.07 | 0.23 |
Relevered beta | 49886.07 | 186614.99 |
Adjusted relevered beta | 33424 | 125032.37 |
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 GWSN:
cost_of_equity (426,970.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (33424) + 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.