SCGY WACC - Weighted Average Cost of Capital
The WACC of Scientific Energy Inc (SCGY) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.7% - 8.8% | 7.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 6.7% - 7.0% | 6.85% |
| WACC | 6.7% - 8.8% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.62 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 8.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 6.7% | 7.0% |
| After-tax WACC | 6.7% | 8.8% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCGY | Scientific Energy Inc | 0.01 | 0.14 | 0.14 |
| BQ | Boqii Holding Ltd | 3.76 | 2.08 | 0.56 |
| FOOD.TO | Goodfood Market Corp | 3.56 | 1.54 | 0.43 |
| HEWA | HealthWarehouse.com Inc | 0.37 | 0.15 | 0.12 |
| ID | Parts Id Inc | 2 | 1.39 | 0.56 |
| KITS.TO | Kits Eyecare Ltd | 0.02 | 1.38 | 1.36 |
| RSTN | RDE Inc | 0.07 | 0.46 | 0.44 |
| RUHN | Ruhnn Holding Ltd | 0.01 | 1.07 | 1.07 |
| UXIN | Uxin Ltd | 0.29 | 0.67 | 0.55 |
| WNW | Wunong Net Technology Co Ltd | 1.08 | 0.77 | 0.43 |
| Low | High | |
| Unlevered beta | 0.44 | 0.55 |
| Relevered beta | 0.43 | 0.55 |
| Adjusted relevered beta | 0.62 | 0.7 |
SCGY'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 SCGY:
cost_of_equity (7.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.62) + 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.