The WACC of Maxima Group Inc (MXMG) is 5.8%.
Range | Selected | |
Cost of equity | 4.8% - 11.2% | 8% |
Tax rate | 27.0% - 27.0% | 27% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.2% - 7.4% | 5.8% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 0.39 | 1.35 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.8% | 11.2% |
Tax rate | 27.0% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.2% | 7.4% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MXMG | Maxima Group Inc | 0.98 | 0.51 | 0.3 |
DHCC | Diamondhead Casino Corp | 2.07 | -0.96 | -0.38 |
DKMR | Xtreme Fighting Championships Inc | 0.29 | 0.99 | 0.82 |
ECXJ | Cxj Group Co Ltd | 0.14 | -0.57 | -0.51 |
EPGG | Empire Global Gaming Inc | 8.25 | -6.55 | -0.93 |
GOCO.CN | Go Metals Corp | 0 | 1.07 | 1.07 |
NNX.V | Nickel North Exploration Corp | 2.31 | 0.18 | 0.07 |
OPC.CN | Organic Potash Corp | 0.24 | 7.12 | 6.04 |
SPFY.CN | Spacefy Inc | 0.25 | -2.59 | -2.19 |
SYNJ | Day Tradexchange Inc | 1334.3 | -1.32 | 0 |
Low | High | |
Unlevered beta | -0.15 | 0.16 |
Relevered beta | 0.09 | 1.52 |
Adjusted relevered beta | 0.39 | 1.35 |
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 MXMG:
cost_of_equity (8.00%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.39) + 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.