RETC
12 Retech Corp
Price:  
0.00 
USD
Volume:  
1,756,590.00
United States | N/A
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RETC WACC - Weighted Average Cost of Capital

The WACC of 12 Retech Corp (RETC) is 3.9%.

The Cost of Equity of 12 Retech Corp (RETC) is 33.60%.
The Cost of Debt of 12 Retech Corp (RETC) is 5.00%.

Range Selected
Cost of equity 1.00% - 66.20% 33.60%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 4.1% 3.9%
WACC

RETC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -1.16 10.51
Additional risk adjustments 2.5% 3.0%
Cost of equity 1.00% 66.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 137.27 137.27
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 4.1%
Selected WACC 3.9%

RETC'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 RETC:

cost_of_equity (33.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-1.16) + risk_adjustments (2.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.