MINE WACC - Weighted Average Cost of Capital
The WACC of Minerco Inc (MINE) is 4.6%.
| Range | Selected | |
| Cost of equity | 18758.7% - 31706.7% | 25232.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 4.9% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 4077.14 | 5661.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18758.7% | 31706.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 25801.68 | 25801.68 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 4.9% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MINE | Minerco Inc | 25801.68 | -140.8 | -0.01 |
| CELH | Celsius Holdings Inc | 0 | 0.58 | 0.58 |
| FMBV | Full Motion Beverage Inc | 6.43 | 2.1 | 0.37 |
| GHMP | Good Hemp Inc | 0.7 | 0.38 | 0.25 |
| JSDA | Jones Soda Co | 0.01 | 0.97 | 0.96 |
| MLHC | M Line Holdings Inc | 3103.85 | 0 | 0 |
| MOJO | MOJO Organics Inc | 0.01 | 0.4 | 0.4 |
| NBEV | Newage Inc | 2.3 | 1.41 | 0.52 |
| REED | Reed's Inc | 0.19 | -0.3 | -0.26 |
| TNY.CN | Tinley Beverage Company Inc | 0.37 | -0.54 | -0.42 |
| EXC.WA | Excellence SA | 0.06 | 0.91 | 0.87 |
| Low | High | |
| Unlevered beta | 0.25 | 0.4 |
| Relevered beta | 6084.79 | 8448.84 |
| Adjusted relevered beta | 4077.14 | 5661.05 |
MINE'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 MINE:
cost_of_equity (25,232.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4077.14) + 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.