The WACC of StrikeForce Technologies Inc (SFOR) is 5.8%.
Range | Selected | |
Cost of equity | 5.9% - 8.7% | 7.3% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 4.6% - 7.1% | 5.8% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.0% | 6.0% |
Adjusted beta | 0.34 | 0.59 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 8.7% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.8 | 0.8 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 4.6% | 7.1% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SFOR | StrikeForce Technologies Inc | 0.8 | 3.59 | 2.27 |
BKYI | BIO-Key International Inc | 0.35 | 1.34 | 1.07 |
DUOT | Duos Technologies Group Inc | 0.05 | 1.33 | 1.29 |
HS.CN | Healthspace Data Systems Ltd | 0.07 | -1.45 | -1.38 |
INLX | Intellinetics Inc | 0.03 | -0.38 | -0.38 |
PBTS | Powerbridge Technologies Co Ltd | 2.44 | 3.36 | 1.21 |
SSFT | Sonasoft Corp | 1.24 | 0.3 | 0.16 |
VLDI | Validian Corp | 20.46 | -1.74 | -0.11 |
Low | High | |
Unlevered beta | 0.1 | 1.1 |
Relevered beta | 0.01 | 0.39 |
Adjusted relevered beta | 0.34 | 0.59 |
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.