The WACC of indiePub Entertainment Inc (IPUB) is 168.8%.
| Range | Selected | |
| Cost of equity | 320.70% - 2,369.30% | 1,345.00% |
| Tax rate | 11.00% - 20.50% | 15.75% |
| Cost of debt | 7.00% - 415.70% | 211.35% |
| WACC | 6.4% - 331.2% | 168.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 68.87 | 422.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 320.70% | 2,369.30% |
| Tax rate | 11.00% | 20.50% |
| Debt/Equity ratio | 2571.57 | 2571.57 |
| Cost of debt | 7.00% | 415.70% |
| After-tax WACC | 6.4% | 331.2% |
| Selected WACC | 168.8% | |
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 IPUB:
cost_of_equity (1,345.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (68.87) + 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.