SHRG WACC - Weighted Average Cost of Capital

The WACC of Sharing Services Global Corp (SHRG) is 6.4%.

The Cost of Equity of Sharing Services Global Corp (SHRG) is 8.50%.

The Cost of Debt of Sharing Services Global Corp (SHRG) is 6.85%.

	Range	Selected
Cost of equity	6.70% - 10.30%	8.50%
Tax rate	8.90% - 14.90%	11.90%
Cost of debt	6.70% - 7.00%	6.85%
WACC	6.2% - 6.6%	6.4%

WACC

SHRG WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.62	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	10.30%

Tax rate	8.90%	14.90%
Debt/Equity ratio	5.77	5.77
Cost of debt	6.70%	7.00%

After-tax WACC	6.2%	6.6%


Selected WACC	6.4%

SHRG'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 SHRG:

cost_of_equity (8.50%) = 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.