SPCO
Stephan Co
Price:  
0.80 
USD
Volume:  
11,560.00
United States | Personal Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SPCO WACC - Weighted Average Cost of Capital

The WACC of Stephan Co (SPCO) is 6.1%.

The Cost of Equity of Stephan Co (SPCO) is 6.15%.
The Cost of Debt of Stephan Co (SPCO) is 5.50%.

Range Selected
Cost of equity 5.40% - 6.90% 6.15%
Tax rate 2.60% - 11.40% 7.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.3% - 6.9% 6.1%
WACC

SPCO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 6.90%
Tax rate 2.60% 11.40%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 7.00%
After-tax WACC 5.3% 6.9%
Selected WACC 6.1%

SPCO'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 SPCO:

cost_of_equity (6.15%) = 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.