SEDO WACC - Weighted Average Cost of Capital
The WACC of Seedo Corp (SEDO) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.7% | 8.6% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 8.6% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.03 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.7% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 8.6% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SEDO | Seedo Corp | 0.21 | 1.05 | 0.91 |
| AMMJ | American Cannabis Company Inc | 2.46 | -0.11 | -0.04 |
| AVMR | AVRA Medical Robotics Inc | 0.08 | 3.55 | 3.34 |
| FFLO | Free Flow Inc | 0.1 | -0.7 | -0.65 |
| GRNH | Greengro Technologies Inc | 259.74 | -7.37 | -0.04 |
| ORTH.CN | Ortho Regenerative Technologies Inc | 0.58 | 0.42 | 0.3 |
| RIGH | RightSmile Inc | 8.47 | -0.17 | -0.02 |
| TSPG | TGI Solar Power Group Inc | 0.01 | -0.81 | -0.8 |
| ZEU.CN | Zeu Technologies Inc | 12.84 | 0.07 | 0.01 |
| Low | High | |
| Unlevered beta | -0.04 | 0 |
| Relevered beta | 1.04 | 1.07 |
| Adjusted relevered beta | 1.03 | 1.05 |
SEDO'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 SEDO:
cost_of_equity (8.60%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.03) + 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.