SCTC WACC - Weighted Average Cost of Capital
The WACC of Scoutcam Inc (SCTC) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.4% | 6.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.5% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.32 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.5% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCTC | Scoutcam Inc | 1.12 | -0.88 | -0.49 |
| AMIH | American International Holdings Corp | 133.16 | -11.4 | -0.12 |
| APP.CN | Global Cannabis Applications Corp | 0.34 | 1.25 | 1 |
| BTC.CN | Bluesky Digital Assets Corp | 0.02 | -3.83 | -3.78 |
| BTIM | Boatim Inc | 341 | 15.65 | 0.06 |
| DELC.CN | Delic Holdings Inc | 3.06 | 0.97 | 0.3 |
| EPY.CN | E-Play Digital Inc | 1.32 | -1.68 | -0.86 |
| IP.CN | ImagineAR Inc | 0.05 | 2.2 | 2.13 |
| NUR.CN | Nuran Wireless Inc | 5.22 | 0.42 | 0.09 |
| SPO.CN | SponsorsOne Inc | 0.08 | 0 | 0 |
| Low | High | |
| Unlevered beta | -0.05 | 0.07 |
| Relevered beta | -0.01 | 0.19 |
| Adjusted relevered beta | 0.32 | 0.46 |
SCTC'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 SCTC:
cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.