SNPW
Sun Pacific Holding Corp
Price:  
1.25 
USD
Volume:  
370.00
United States | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SNPW WACC - Weighted Average Cost of Capital

The WACC of Sun Pacific Holding Corp (SNPW) is 7.9%.

The Cost of Equity of Sun Pacific Holding Corp (SNPW) is 6.10%.
The Cost of Debt of Sun Pacific Holding Corp (SNPW) is 11.50%.

Range Selected
Cost of equity 5.10% - 7.10% 6.10%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 11.50% - 11.50% 11.50%
WACC 7.7% - 8.1% 7.9%
WACC

SNPW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.15 0.3
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.10% 7.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.37 3.37
Cost of debt 11.50% 11.50%
After-tax WACC 7.7% 8.1%
Selected WACC 7.9%

SNPW'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 SNPW:

cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.15) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.