The WACC of Reviv3 Procare Co (RVIV) is 7.8%.
Range | Selected | |
Cost of equity | 6.5% - 9.2% | 7.85% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 4.9% | 4.45% |
WACC | 6.5% - 9.2% | 7.8% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.0% | 6.0% |
Adjusted beta | 0.47 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 9.2% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.9% |
After-tax WACC | 6.5% | 9.2% |
Selected WACC | 7.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
RVIV | Reviv3 Procare Co | 0 | 0.07 | 0.07 |
APSI | Aqua Power Systems Inc | 0.08 | -0.49 | -0.46 |
DOSE.CN | Rapid Dose Therapeutics Corp | 0.09 | -0.35 | -0.33 |
FWAV | Fourth Wave Energy Inc | 0.15 | 0.91 | 0.82 |
GSD.V | Devonian Health Group Inc | 0.09 | 1.83 | 1.71 |
INEO.V | INEO Tech Corp | 0.37 | 1.06 | 0.84 |
NGTF | NightFood Holdings Inc | 1.16 | -7.66 | -4.14 |
PCTL | PCT Ltd | 26.88 | 280.76 | 13.62 |
SIRE.CN | Sire Bioscience Inc | 0.09 | 1.08 | 1.01 |
USDR | UAS Drone Corp | 0.06 | -1.03 | -0.99 |
Low | High | |
Unlevered beta | -0.09 | 0.83 |
Relevered beta | 0.21 | 0.51 |
Adjusted relevered beta | 0.47 | 0.67 |
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 RVIV:
cost_of_equity (7.85%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.47) + 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.