SKVI WACC - Weighted Average Cost of Capital
The WACC of Skinvisible Inc (SKVI) is 3.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.0% | 6.2% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.4% - 4.0% | 3.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 4.26 | 4.26 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.4% | 4.0% |
| Selected WACC | 3.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SKVI | Skinvisible Inc | 4.26 | 3.05 | 0.74 |
| EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
| FITX | Creative Edge Nutrition Inc | 29.9 | 0.02 | 0 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.17 | 0.16 |
| GENX.V | GenixPharmaceucticals Corporation | 0.6 | 0.22 | 0.15 |
| JOEY | Joey New York Inc | 106.89 | 0 | 0 |
| LQWC | Lifequest World Corp | 3.18 | -0.68 | -0.2 |
| NUUU | Rejuvel Bio-Sciences Inc | 307.09 | 0 | 0 |
| NUVM | NuVim Inc | 0.57 | -0.44 | -0.31 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| Low | High | |
| Unlevered beta | 0 | 0.07 |
| Relevered beta | 0 | 0.06 |
| Adjusted relevered beta | 0.33 | 0.37 |
SKVI'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 SKVI:
cost_of_equity (6.20%) = 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.