GWSN
Gulf West Security Network Inc
Price:  
USD
Volume:  
50
United States | Finance and Insurance

GWSN WACC - Weighted Average Cost of Capital

The WACC of Gulf West Security Network Inc (GWSN) is 4.1%.

The Cost of Equity of Gulf West Security Network Inc (GWSN) is 426970.2%.
The Cost of Debt of Gulf West Security Network Inc (GWSN) is 5%.

RangeSelected
Cost of equity153754.3% - 700186.1%426970.2%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC3.9% - 4.4%4.1%
WACC

GWSN WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta33424125032.37
Additional risk adjustments0.0%0.5%
Cost of equity153754.3%700186.1%
Tax rate26.2%27.0%
Debt/Equity ratio
937720937720
Cost of debt5.0%5.0%
After-tax WACC3.9%4.4%
Selected WACC4.1%

GWSN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.070.23
Relevered beta49886.07186614.99
Adjusted relevered beta33424125032.37

GWSN'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 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.