SOBR WACC - Weighted Average Cost of Capital
The WACC of Sobr Safe Inc (SOBR) is 7.7%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.4% | 6.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 21.4% | 14.2% |
| WACC | 5.2% - 10.2% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.29 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 7.0% | 21.4% |
| After-tax WACC | 5.2% | 10.2% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SOBR | Sobr Safe Inc | 0.03 | 1.74 | 1.71 |
| ACU.V | Aurora Solar Technologies Inc | 0.1 | 2.09 | 1.94 |
| CRGS | CurAegis Technologies Inc | 1843.54 | 1.06 | 0 |
| DPLS | Darkpulse Inc | 0.58 | -0.5 | -0.35 |
| IMTE | Integrated Media Technology Ltd | 1.77 | -0.92 | -0.4 |
| LPS.V | Legend Power Systems Inc | 0.02 | 1.12 | 1.11 |
| MACE | Mace Security International Inc | 1.74 | -0.24 | -0.11 |
| MRM.CN | Micromem Technologies Inc | 0.11 | 0.3 | 0.28 |
| SMIT | Schmitt Industries Inc | 40.78 | 1.15 | 0.04 |
| TEST.V | FluroTech Ltd | 0.27 | -0.59 | -0.49 |
| Low | High | |
| Unlevered beta | -0.04 | 0.13 |
| Relevered beta | -0.06 | 0.18 |
| Adjusted relevered beta | 0.29 | 0.45 |
SOBR'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 SOBR:
cost_of_equity (6.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.29) + 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.