OWCP WACC - Weighted Average Cost of Capital
The WACC of OWC Pharmaceutical Research Corp (OWCP) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.2% | 7.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 6.4% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.43 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 6.4% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OWCP | OWC Pharmaceutical Research Corp | 1.03 | 0 | 0 |
| ASIA.CN | Asia Green Biotechnology Corp | 0.65 | 0.39 | 0.26 |
| CBDX.CN | Canbud Distribution Corp | 0.18 | 1.07 | 0.95 |
| CNNA | Cann American Corp | 0.07 | -0.36 | -0.35 |
| KPAY | KinerjaPay Corp | 12.69 | 1.06 | 0.1 |
| MMNT | Momentous Holdings Corp | 10.96 | 0.47 | 0.05 |
| OVAT.CN | Ovation Science Inc | 0.18 | 1.63 | 1.44 |
| PREV.CN | Preveceutical Medical Inc | 0.2 | 0.67 | 0.58 |
| PURX.V | Pure Extraction Corp | 0 | 0.93 | 0.93 |
| SPUP | Sipup Corp | 3223.79 | 1.79 | 0 |
| TMS.H.V | Targeted Microwave Solutions Inc | 0.33 | -0.9 | -0.73 |
| Low | High | |
| Unlevered beta | 0.05 | 0.26 |
| Relevered beta | 0.15 | 0.67 |
| Adjusted relevered beta | 0.43 | 0.78 |
OWCP'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 OWCP:
cost_of_equity (7.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.43) + 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.