SNPW
Sun Pacific Holding Corp
Price:  
1.21 
USD
Volume:  
230.00
United States | N/A
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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 6.55%.
The Cost of Debt of Sun Pacific Holding Corp (SNPW) is 11.50%.

Range Selected
Cost of equity 5.50% - 7.60% 6.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 11.50% - 11.50% 11.50%
WACC 7.6% - 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 0.14 0.31
Additional risk adjustments 1.0% 1.5%
Cost of equity 5.50% 7.60%
Tax rate 26.20% 27.00%
Debt/Equity ratio 2.25 2.25
Cost of debt 11.50% 11.50%
After-tax WACC 7.6% 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 (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.14) + risk_adjustments (1.25%)

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