The WACC of Metatron Inc (MRNJ) is 6.0%.
Range | Selected | |
Cost of equity | 5.1% - 8.1% | 6.6% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.8% - 7.3% | 6.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.27 | 0.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.1% | 8.1% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.23 | 0.23 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.8% | 7.3% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MRNJ | Metatron Inc | 0.23 | -272.78 | -234 |
CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.83 |
DGTW | DigitalTown Inc | 429.14 | 0 | 0 |
FDIT | Findit Inc | 0.01 | 1.42 | 1.41 |
FLYY.CN | Media Central Corporation Inc | 0.26 | -0.24 | -0.2 |
MBO.V | Mobio Technologies Inc | 0.71 | -0.39 | -0.26 |
MYID.V | Killi Ltd | 0.08 | 1.48 | 1.4 |
RSS.V | Resaas Services Inc | 0 | 0.8 | 0.8 |
WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.02 |
WDDD | Worlds Inc | 1.78 | -1.97 | -0.85 |
YOO.V | YANGAROO Inc | 0.55 | 1.06 | 0.75 |
Low | High | |
Unlevered beta | -0.2 | 0.02 |
Relevered beta | -0.09 | 0.36 |
Adjusted relevered beta | 0.27 | 0.57 |
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 MRNJ:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.27) + 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.