IMHC WACC - Weighted Average Cost of Capital
The WACC of Imperalis Holding Corp (IMHC) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 5.5% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.28 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 5.5% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IMHC | Imperalis Holding Corp | 0.99 | 1.41 | 0.82 |
| ASKH | Astika Holdings Inc | 0.31 | -0.82 | -0.67 |
| BABL | Buildablock Corp. | 0 | -0.03 | -0.03 |
| GNTW | Globe Net Wireless Corp | 0 | 1.78 | 1.78 |
| IMTV | Imagine All The People Inc | 91.3 | 0 | 0 |
| ITNF | Internet Infinity Inc | 0.11 | -0.31 | -0.29 |
| LBTD | Lotus Bio-Technology Development Corp | 8 | -2.22 | -0.32 |
| RAD.CN | Radial Research Corp | 1.76 | -0.09 | -0.04 |
| RGMP | Regnum Corp | 11.52 | 0.71 | 0.08 |
| WRIT | WRIT Media Group Inc | 0.73 | 0.11 | 0.07 |
| Low | High | |
| Unlevered beta | -0.03 | 0.03 |
| Relevered beta | -0.07 | 0.15 |
| Adjusted relevered beta | 0.28 | 0.43 |
IMHC'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 IMHC:
cost_of_equity (6.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.28) + 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.