LTHUQ WACC - Weighted Average Cost of Capital
The WACC of Lithium Technology Corp (LTHUQ) is 4.0%.
| Range | Selected | |
| Cost of equity | 3.1% - 78.5% | 40.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.0% - 5.1% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -2.67 | 11.09 |
| Additional risk adjustments | 11.5% | 12.0% |
| Cost of equity | 3.1% | 78.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 11873.33 | 11873.33 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.0% | 5.1% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LTHUQ | Lithium Technology Corp | 11873.33 | -70.31 | -0.01 |
| AUSI | Aura Systems Inc | 0.51 | 1.31 | 0.96 |
| BICB | Biocube Inc | 43.77 | -0.74 | -0.02 |
| CHGI | China Carbon Graphite Group Inc | 28.91 | 0.63 | 0.03 |
| EGT.V | Eguana Technologies Inc | 9.34 | -0.67 | -0.09 |
| GNAL | Generation Alpha Inc | 529.78 | 0.85 | 0 |
| LRSV | Link Reservations Inc | 0.32 | -0.13 | -0.1 |
| NHHH.V | FuelPositive Corp | 0.03 | 0.9 | 0.88 |
| RGSEQ | Real Goods Solar Inc | 0.03 | 1.08 | 1.05 |
| Low | High | |
| Unlevered beta | -0.01 | 0.02 |
| Relevered beta | -4.48 | 16.06 |
| Adjusted relevered beta | -2.67 | 11.09 |
LTHUQ'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 LTHUQ:
cost_of_equity (40.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-2.67) + risk_adjustments (11.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.