OZSC WACC - Weighted Average Cost of Capital
The WACC of Ozop Energy Solutions Inc (OZSC) is 8.2%.
| Range | Selected | |
| Cost of equity | 5.4% - 11.9% | 8.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 11.1% - 11.1% | 11.1% |
| WACC | 7.9% - 8.5% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 11.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 7.55 | 7.55 |
| Cost of debt | 11.1% | 11.1% |
| After-tax WACC | 7.9% | 8.5% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OZSC | Ozop Energy Solutions Inc | 7.55 | 1.14 | 0.17 |
| ARTH | Arch Therapeutics Inc | 1267524.8 | 1.23 | 0 |
| EMDF | XL Rent Inc | 28.94 | -0.77 | -0.04 |
| KIDS | OrthoPediatrics Corp | 0.13 | 0.52 | 0.47 |
| RVP | Retractable Technologies Inc | 0.05 | 0.55 | 0.53 |
| SIEN | Sientra Inc | 26.62 | -1.12 | -0.05 |
| SMTI | Sanara Medtech Inc | 0.11 | 1.25 | 1.16 |
| TELA | TELA Bio Inc | 0.96 | 0.45 | 0.26 |
| UEEC | United Health Products Inc | 0.02 | -0.93 | -0.92 |
| Low | High | |
| Unlevered beta | 0.04 | 0.25 |
| Relevered beta | 0 | 1.37 |
| Adjusted relevered beta | 0.33 | 1.25 |
OZSC'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 OZSC:
cost_of_equity (8.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.