PVCT WACC - Weighted Average Cost of Capital
The WACC of Provectus Biopharmaceuticals Inc (PVCT) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.6% | 6.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PVCT | Provectus Biopharmaceuticals Inc | 0.08 | 0.44 | 0.41 |
| AVCR.V | Avricore Health Inc | 1.01 | 1.59 | 0.92 |
| CPMD | CannaPharmaRx Inc | 3.21 | -0.6 | -0.18 |
| KOAN | Resonate Blends Inc | 27.07 | 0.88 | 0.04 |
| MJ.CN | True Leaf Brands Inc | 8.68 | 1.01 | 0.14 |
| MLCL.CN | Molecule Holdings Inc | 10.9 | 1.39 | 0.15 |
| OILS.CN | Nextleaf Solutions Ltd | 0.04 | 2.02 | 1.96 |
| SUGR.V | SugarBud Craft Growers Corp | 1.22 | 0.61 | 0.32 |
| THC.CN | THC Biomed Intl Ltd | 2.74 | -0.29 | -0.1 |
| Low | High | |
| Unlevered beta | 0.14 | 0.29 |
| Relevered beta | 0.1 | 0.24 |
| Adjusted relevered beta | 0.4 | 0.49 |
PVCT'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 PVCT:
cost_of_equity (6.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.