SFOR
StrikeForce Technologies Inc
Price:  
0.01 
USD
Volume:  
1,774,710
United States | Software

SFOR WACC - Weighted Average Cost of Capital

The WACC of StrikeForce Technologies Inc (SFOR) is 5.8%.

The Cost of Equity of StrikeForce Technologies Inc (SFOR) is 7.3%.
The Cost of Debt of StrikeForce Technologies Inc (SFOR) is 5.5%.

RangeSelected
Cost of equity5.9% - 8.7%7.3%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 7.0%5.5%
WACC4.6% - 7.1%5.8%
WACC

SFOR WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.340.59
Additional risk adjustments0.0%0.5%
Cost of equity5.9%8.7%
Tax rate26.2%27.0%
Debt/Equity ratio
0.80.8
Cost of debt4.0%7.0%
After-tax WACC4.6%7.1%
Selected WACC5.8%

SFOR WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.11.1
Relevered beta0.010.39
Adjusted relevered beta0.340.59

SFOR'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 SFOR:

cost_of_equity (7.30%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.34) + 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.