The WACC of Remark Holdings Inc (MARK) is 9.6%.
Range | Selected | |
Cost of equity | 6.4% - 13.2% | 9.8% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 7.0% - 19.1% | 13.05% |
WACC | 5.3% - 13.8% | 9.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 1.49 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.4% | 13.2% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 6.09 | 6.09 |
Cost of debt | 7.0% | 19.1% |
After-tax WACC | 5.3% | 13.8% |
Selected WACC | 9.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MARK | Remark Holdings Inc | 6.09 | 0.33 | 0.06 |
BZUN | Baozun Inc | 1.55 | 0.58 | 0.27 |
EBAY | eBay Inc | 0.22 | 0.49 | 0.42 |
FTFT | Future Fintech Group Inc | 0.1 | 0.41 | 0.38 |
PBX.V | PowerBand Solutions Inc | 0.06 | -1.75 | -1.67 |
SHRG | Sharing Services Global Corp | 5.77 | 0.3 | 0.06 |
VTEQ | Veriteq Corp | 125.5 | 1.01 | 0.01 |
WLTR.V | GOLO Mobile Inc | 0.09 | 0.99 | 0.93 |
WNW | Wunong Net Technology Co Ltd | 1.11 | 0.73 | 0.4 |
Low | High | |
Unlevered beta | 0.1 | 0.36 |
Relevered beta | 0.33 | 1.73 |
Adjusted relevered beta | 0.55 | 1.49 |
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 MARK:
cost_of_equity (9.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.55) + 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.