SMME WACC - Weighted Average Cost of Capital
The WACC of Smartmetric Inc (SMME) is 4.7%.
| Range | Selected | |
| Cost of equity | 19.6% - 92.7% | 56.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.0% - 5.4% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 3.43 | 15.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.6% | 92.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 50.62 | 50.62 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.0% | 5.4% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SMME | Smartmetric Inc | 50.62 | -92.52 | -2.44 |
| ARSC | Bitcoin Crypto Currency Exchange Corp | 20.62 | -0.61 | -0.04 |
| AVYA | Avaya Holdings Corp | 118.74 | 1.41 | 0.02 |
| BDGY | Bridgeway National Corp. | 2254.16 | -0.73 | 0 |
| BLBX | Blackboxstocks Inc | 0.01 | 1.39 | 1.39 |
| EPAZ | Auto Dataflow Inc | 2.44 | 2.05 | 0.74 |
| IDCC | InterDigital Inc | 0.08 | 0.7 | 0.66 |
| LTV.V | LeoNovus Inc | 0.22 | 0.22 | 0.19 |
| MODN | Model N Inc | 0.24 | 0.72 | 0.61 |
| ONE.V | 01 Communique Laboratory Inc | 0 | -1.43 | -1.43 |
| SSNC | SS&C Technologies Holdings Inc | 0.34 | 0.75 | 0.6 |
| Low | High | |
| Unlevered beta | 0.02 | 0.6 |
| Relevered beta | 4.63 | 22.93 |
| Adjusted relevered beta | 3.43 | 15.69 |
SMME'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 SMME:
cost_of_equity (56.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.43) + 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.