PUPS WACC - Weighted Average Cost of Capital
The WACC of Pick Ups Plus Inc (PUPS) is 5.3%.
| Range | Selected | |
| Cost of equity | 5743.8% - 11570.5% | 8657.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 4.5% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1247.82 | 2065.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5743.8% | 11570.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 12154.64 | 12154.64 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 4.5% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PUPS | Pick Ups Plus Inc | 12154.64 | -69.79 | -0.01 |
| CALI | China Auto Logistics Inc | 3.65 | 0.91 | 0.25 |
| DIV.TO | Diversified Royalty Corp | 0.46 | 0.53 | 0.4 |
| KXIN | Kaixin Auto Holdings | 0.09 | -0.31 | -0.29 |
| LESL | Leslie's Inc | 10.02 | 1.3 | 0.16 |
| LMPX | Lmp Automotive Holdings Inc | 3.74 | 1.52 | 0.41 |
| LOTZ | Carlotz Inc | 2.29 | 0.65 | 0.25 |
| TLFA | Tandy Leather Factory Inc | 0 | 0.73 | 0.73 |
| FESTI.IC | Festi hf | 0.48 | 0.42 | 0.31 |
| MEPET.IS | Mepet Metro Petrol ve Tesisleri Sanayi Ticaret AS | 0.35 | 1.33 | 1.06 |
| Low | High | |
| Unlevered beta | 0.25 | 0.35 |
| Relevered beta | 1861.93 | 3082.03 |
| Adjusted relevered beta | 1247.82 | 2065.29 |
PUPS'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 PUPS:
cost_of_equity (8,657.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1247.82) + 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.