SILO WACC - Weighted Average Cost of Capital
The WACC of Silo Pharma Inc (SILO) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.4% | 6.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.3% - 6.3% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.3% | 6.3% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SILO | Silo Pharma Inc | 1.16 | -0.74 | -0.4 |
| BEAN.CN | Peekaboo Beans Inc | 0.96 | -0.17 | -0.1 |
| FORD | Forward Industries Inc | 0.07 | -1.97 | -1.87 |
| GFTX | Global Fiber Technologies Inc | 0.04 | 0.94 | 0.91 |
| IFA.TO | iFabric Corp | 0.06 | 0.1 | 0.09 |
| LFAP | LGBTQ Loyalty Holdings Inc | 1969.62 | 0 | 0 |
| MENE.V | Mene Inc | 0.02 | 1.14 | 1.12 |
| RYU.V | RYU Apparel Inc | 1.47 | 0.38 | 0.19 |
| TALN | Talon International Inc | 1.03 | -0.38 | -0.22 |
| TBLT | Toughbuilt Industries Inc | 0.12 | 0.15 | 0.13 |
| Low | High | |
| Unlevered beta | -0.04 | 0.11 |
| Relevered beta | 0 | 0.19 |
| Adjusted relevered beta | 0.33 | 0.46 |
SILO'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 SILO:
cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.