KBLB WACC - Weighted Average Cost of Capital
The WACC of Kraig Biocraft Laboratories Inc (KBLB) is 8.0%.
| Range | Selected | |
| Cost of equity | 5.9% - 10.2% | 8.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 10.1% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.44 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 10.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 10.1% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KBLB | Kraig Biocraft Laboratories Inc | 0.02 | 0.31 | 0.31 |
| ADMT | ADM Tronics Unlimited Inc | 0.12 | -0.18 | -0.17 |
| CRKN | Crown Electrokinetics Corp. | 0.35 | 1.23 | 0.98 |
| FFHL | Fuwei Films (Holdings) Co Ltd | 0 | 0.91 | 0.91 |
| GDNP.V | Good Natured Products Inc | 34.63 | -1.11 | -0.04 |
| GRA.V | NanoXplore Inc | 0.08 | 1.15 | 1.08 |
| GURE | Gulf Resources Inc | 0.18 | -0.63 | -0.55 |
| LOOP | Loop Industries Inc | 0.07 | 1.02 | 0.97 |
| MX.TO | Methanex Corp | 1.46 | 1.94 | 0.94 |
| SINC | Sincerity Applied Materials Holdings Corp | 1.33 | -0.94 | -0.48 |
| Low | High | |
| Unlevered beta | 0.17 | 0.92 |
| Relevered beta | 0.16 | 0.93 |
| Adjusted relevered beta | 0.44 | 0.95 |
KBLB'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 KBLB:
cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.44) + 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.