The WACC of Mass Megawatts Windpower Inc (MMMW) is 6.3%.
Range | Selected | |
Cost of equity | 7.3% - 10.4% | 8.85% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.5% - 7.0% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.75 | 1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.3% | 10.4% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.5% | 7.0% |
Selected WACC | 6.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MMMW | Mass Megawatts Windpower Inc | 0.33 | -90.52 | -73.02 |
AZZ | AZZ Inc | 0.3 | 1.36 | 1.11 |
BE | Bloom Energy Corp | 0.27 | 1.85 | 1.55 |
BWEN | Broadwind Inc | 0.36 | 0.42 | 0.33 |
CETY | Clean Energy Technologies Inc | 0.28 | 0.47 | 0.39 |
CHGI | China Carbon Graphite Group Inc | 28.91 | 1.35 | 0.06 |
EHT.V | EnerDynamic Hybrid Technologies Corp | 1.92 | 1.02 | 0.42 |
GCHT | Gc China Turbine Corp | 0.6 | 0 | 0 |
POLA | Polar Power Inc | 1.17 | 1.48 | 0.8 |
PPSI | Pioneer Power Solutions Inc | 0.01 | 1.98 | 1.97 |
TPIC | TPI Composites Inc | 10.3 | 1.58 | 0.19 |
Low | High | |
Unlevered beta | 0.33 | 0.42 |
Relevered beta | 0.63 | 1 |
Adjusted relevered beta | 0.75 | 1 |
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 MMMW:
cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.75) + 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.