NBEV WACC - Weighted Average Cost of Capital
The WACC of Newage Inc (NBEV) is 6.2%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.3% | 10.05% |
| Tax rate | 14.1% - 21.6% | 17.85% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.8% - 7.5% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.73 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.3% |
| Tax rate | 14.1% | 21.6% |
| Debt/Equity ratio | 2.3 | 2.3 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.8% | 7.5% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBEV | Newage Inc | 2.3 | 1.41 | 0.48 |
| ALKM | Alkame Holdings Inc | 107.56 | 4.97 | 0.05 |
| COKE | Coca-Cola Consolidated Inc | 0.17 | 0.25 | 0.22 |
| GHMP | Good Hemp Inc | 0.7 | 0.38 | 0.24 |
| HIPH | American Premium Water Corp | 0.8 | -208.92 | -125.02 |
| MOJO | MOJO Organics Inc | 0.01 | 0.49 | 0.49 |
| REED | Reed's Inc | 0.51 | 0.33 | 0.23 |
| RLBD | Real Brands Inc | 3.93 | -134.54 | -31.42 |
| TNY.CN | Tinley Beverage Company Inc | 0.37 | -0.54 | -0.41 |
| WTER | Alkaline Water Company Inc | 21.06 | 26839.62 | 1442.75 |
| Low | High | |
| Unlevered beta | 0.15 | 0.24 |
| Relevered beta | 0.6 | 1.27 |
| Adjusted relevered beta | 0.73 | 1.18 |
NBEV'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 NBEV:
cost_of_equity (10.05%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.73) + 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.