SRNA WACC - Weighted Average Cost of Capital
The WACC of Surna Inc (SRNA) is 6.2%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.1% | 8.75% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 6.9% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.1% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 6.9% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRNA | Surna Inc | 0.09 | 0.71 | 0.67 |
| AAON | Aaon Inc | 0.02 | 1.58 | 1.55 |
| AEHL | Antelope Enterprise Holdings Ltd | 0.03 | -0.68 | -0.66 |
| APOG | Apogee Enterprises Inc | 0.33 | 0.87 | 0.7 |
| BURCA | Burnham Holdings Inc | 0.29 | 0.17 | 0.14 |
| CNR | Core Natural Resources, Inc. | 0.06 | 1.45 | 1.39 |
| CSTE | Caesarstone Ltd | 0.07 | 0.73 | 0.7 |
| CSWI | CSW Industrials Inc | 0.03 | 1.71 | 1.67 |
| IVX.V | Inventronics Ltd | 1.11 | 0.66 | 0.36 |
| PFB.TO | PFB Corporation | 0.1 | 0.52 | 0.49 |
| TKLS | Trutankless Inc | 0.4 | 13.85 | 10.73 |
| Low | High | |
| Unlevered beta | 0.67 | 0.7 |
| Relevered beta | 1 | 1.21 |
| Adjusted relevered beta | 1 | 1.14 |
SRNA'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 SRNA:
cost_of_equity (8.75%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1) + 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.