RIWI.V WACC - Weighted Average Cost of Capital
The WACC of Riwi Corp (RIWI.V) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.6% | 7.35% |
| Tax rate | 7.8% - 12.2% | 10% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.1% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.44 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.6% |
| Tax rate | 7.8% | 12.2% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.1% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RIWI.V | Riwi Corp | 0.14 | -0.08 | -0.07 |
| ATIF | ATIF Holdings Ltd | 0.02 | -0.44 | -0.43 |
| BLGV.CN | Belgravia Hartford Capital Inc | 0.01 | 0.61 | 0.6 |
| CBZ | CBIZ Inc | 0.37 | 0.67 | 0.5 |
| DCAC | Daniels Corporate Advisory Company Inc | 1048.17 | 0 | 0 |
| HURN | Huron Consulting Group Inc | 0.15 | 0.45 | 0.39 |
| ICFI | ICF International Inc | 0.27 | 0.29 | 0.23 |
| OPMZ | 1PM Industries Inc | 0.02 | 0 | 0 |
| WLDN | Willdan Group Inc | 0.1 | 0.54 | 0.5 |
| WSCO | Wall Street Media Co Inc | 0 | 0.38 | 0.37 |
| Low | High | |
| Unlevered beta | 0.14 | 0.38 |
| Relevered beta | 0.16 | 0.43 |
| Adjusted relevered beta | 0.44 | 0.62 |
RIWI.V'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 RIWI.V:
cost_of_equity (7.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.