SORT WACC - Weighted Average Cost of Capital
The WACC of IncJet Holding Inc (SORT) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.1% | 6.25% |
| Tax rate | 6.3% - 37.7% | 22% |
| Cost of debt | 5.7% - 6.1% | 5.9% |
| WACC | 5.4% - 6.4% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.1% |
| Tax rate | 6.3% | 37.7% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 5.7% | 6.1% |
| After-tax WACC | 5.4% | 6.4% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SORT | IncJet Holding Inc | 0.27 | 0.58 | 0.46 |
| AFAP | AFA Protective Systems Inc | 0.04 | 0.94 | 0.91 |
| CSKD | China Skyrise Digital Service Inc | 0.11 | -0.08 | -0.07 |
| HCLC | Health-Chem Corp | 4.27 | 0.14 | 0.03 |
| LMDX | LumiraDx Ltd | 68.76 | -1.43 | -0.02 |
| LUVU | Luvu Brands Inc | 0.9 | 0.72 | 0.39 |
| NDVR | Ultra Motorcycle Co | 2.16 | 0 | 0 |
| TOOD | Thermwood Corp | 0.26 | 0.25 | 0.2 |
| VULC | Vulcan International Corp | 23.06 | 0.46 | 0.02 |
| WWT.V | Water Ways Technologies Inc | 4.4 | -0.12 | -0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.1 |
| Relevered beta | 0 | 0.12 |
| Adjusted relevered beta | 0.33 | 0.41 |
SORT'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 SORT:
cost_of_equity (6.25%) = 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.