MSPC WACC - Weighted Average Cost of Capital
The WACC of Metrospaces Inc (MSPC) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.7% | 8.2% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.62 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MSPC | Metrospaces Inc | 19.49 | 43.07 | 2.83 |
| DREM | Dream Homes & Development Corp | 13.34 | -0.31 | -0.03 |
| EMER.CN | Emergia Inc | 5.01 | 1.79 | 0.38 |
| HALB | Halberd Corp | 1.56 | 0.97 | 0.45 |
| IHSI | Intelligent Highway Solutions Inc | 1.38 | 0.94 | 0.47 |
| KTR.V | Kintavar Exploration Inc | 0.63 | 1.39 | 0.96 |
| PBAJ | Petro Usa Inc | 0 | -0.56 | -0.56 |
| SMXT | SolarMax Technology Inc | 0.61 | 0.7 | 0.49 |
| SRSG | Spirits Time International Inc | 0.8 | 1.18 | 0.74 |
| VINO | Gaucho Group Holdings Inc | 30.57 | 1.25 | 0.05 |
| Low | High | |
| Unlevered beta | 0.43 | 0.48 |
| Relevered beta | 0.43 | 0.79 |
| Adjusted relevered beta | 0.62 | 0.86 |
MSPC'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 MSPC:
cost_of_equity (8.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.62) + 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.