The WACC of Greenspace Brands Inc (JTR.V) is 5.7%.
Range | Selected | |
Cost of equity | 6.2% - 9.2% | 7.7% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.9% - 6.4% | 5.7% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.5% | 6.5% |
Adjusted beta | 0.36 | 0.62 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.2% | 9.2% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.9% | 6.4% |
Selected WACC | 5.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JTR.V | Greenspace Brands Inc | 5.28 | 2.94 | 0.61 |
AMNF | Armanino Foods Of Distinction Inc | 0.01 | 0.1 | 0.09 |
ANPFF | Anpulo Food Inc | 0.84 | 0.93 | 0.57 |
BSFC | Blue Star Foods Corp | 0.77 | 1.74 | 1.11 |
CUBV | CUBA Beverage Co | 0.17 | -0.09 | -0.08 |
GLG.TO | Glg Life Tech Corp | 33.27 | -0.49 | -0.02 |
MMMB | MamaMancini's Holdings Inc | 0.07 | 0.42 | 0.4 |
NUZE | NuZee Inc | 0 | -1.24 | -1.23 |
PLAG | Planet Green Holdings Corp | 0.18 | -2.45 | -2.17 |
RIBT | RiceBran Technologies | 5572 | -2.34 | 0 |
TOFB | Tofutti Brands Inc | 0.01 | 0.61 | 0.61 |
Low | High | |
Unlevered beta | 0 | 0.4 |
Relevered beta | 0.04 | 0.43 |
Adjusted relevered beta | 0.36 | 0.62 |
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 JTR.V:
cost_of_equity (7.70%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.36) + 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.