LITH WACC - Weighted Average Cost of Capital
The WACC of Bioelife Corp (LITH) is 3.7%.
| Range | Selected | |
| Cost of equity | 8.3% - 28.7% | 18.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 3.7% | 3.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.96 | 4.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 28.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 297.09 | 297.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 3.7% |
| Selected WACC | 3.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LITH | Bioelife Corp | 297.09 | -2.68 | -0.01 |
| AREV.CN | Arev Nanotec Brands Inc | 0.01 | -1.08 | -1.08 |
| ASIA.CN | Asia Green Biotechnology Corp | 0.65 | 0.39 | 0.26 |
| ATHR.CN | Aether Catalyst Solutions Inc | 0.07 | 1.12 | 1.07 |
| CNNA | Cann American Corp | 0.07 | -0.36 | -0.35 |
| MMNT | Momentous Holdings Corp | 10.96 | 0.47 | 0.05 |
| MTVX | APT Moto Vox Group Inc | 3112.26 | 0 | 0 |
| TMS.H.V | Targeted Microwave Solutions Inc | 0.33 | -0.9 | -0.73 |
| UVFT | UV Flu Technologies Inc | 23.46 | 0.5 | 0.03 |
| Low | High | |
| Unlevered beta | -0.01 | 0.02 |
| Relevered beta | 0.94 | 5.87 |
| Adjusted relevered beta | 0.96 | 4.26 |
LITH'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 LITH:
cost_of_equity (18.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.96) + 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.