The WACC of Hybrid Energy Holdings Inc (HYBE) is 3.7%.
Range | Selected | |
Cost of equity | 5.4% - 6.7% | 6.05% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.7% - 3.7% | 3.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.32 | 0.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 6.7% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 125.57 | 125.57 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.7% | 3.7% |
Selected WACC | 3.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
HYBE | Hybrid Energy Holdings Inc | 125.57 | -35.75 | -0.39 |
JCI.H.V | JM Capital II Corp | 1.57 | 1.84 | 0.86 |
OPUS | Opus Magnum Ameris Inc | 48281.82 | 0 | 0 |
WWSG | Worldwide Strategies Inc | 202.21 | -0.89 | -0.01 |
Low | High | |
Unlevered beta | 0 | 0 |
Relevered beta | -0.01 | 0 |
Adjusted relevered beta | 0.32 | 0.33 |
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 HYBE:
cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.