SIBE WACC - Weighted Average Cost of Capital
The WACC of Sibling Group Holdings Inc (SIBE) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.0% | 6.55% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 7.5% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.45 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.0% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 7.5% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIBE | Sibling Group Holdings Inc | 0.12 | 3.81 | 3.51 |
| AHIX | ALUF Holdings Inc | 0.04 | -1.21 | -1.18 |
| ATHC | Accelerated Technologies Holding Corp | 39200 | 55.55 | 0 |
| BXV.CN | Bexar Ventures Inc | 0.06 | 0.95 | 0.91 |
| DUUO | Duo World Inc | 128.45 | -54.79 | -0.58 |
| FRZT | Freeze Tag Inc | 0.94 | -0.23 | -0.14 |
| FTWS | Flitways Technology Inc | 638.42 | 51 | 0.11 |
| MSTO | Masterbeat Corp | 3076.92 | 105.89 | 0.05 |
| SRCO | Sparta Commercial Services Inc | 1.29 | 0.67 | 0.34 |
| UOMO | Uomo Media Inc | 3373.16 | -38.12 | -0.02 |
| VYND | Vynleads Inc | 0.01 | 5.18 | 5.15 |
| Low | High | |
| Unlevered beta | 0 | 0.11 |
| Relevered beta | 0.18 | 0.61 |
| Adjusted relevered beta | 0.45 | 0.74 |
SIBE'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 SIBE:
cost_of_equity (6.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.45) + 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.