KAVL
Kaival Brands Innovations Group Inc
Price:  
0.51 
USD
Volume:  
29,215.00
United States | Distributors
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KAVL WACC - Weighted Average Cost of Capital

The WACC of Kaival Brands Innovations Group Inc (KAVL) is 9.4%.

The Cost of Equity of Kaival Brands Innovations Group Inc (KAVL) is 9.50%.
The Cost of Debt of Kaival Brands Innovations Group Inc (KAVL) is 7.00%.

Range Selected
Cost of equity 8.00% - 11.00% 9.50%
Tax rate 0.20% - 5.70% 2.95%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.0% - 10.9% 9.4%
WACC

KAVL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.91 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 11.00%
Tax rate 0.20% 5.70%
Debt/Equity ratio 0.04 0.04
Cost of debt 7.00% 7.00%
After-tax WACC 8.0% 10.9%
Selected WACC 9.4%

KAVL'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 KAVL:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.91) + 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.