SSTT WACC - Weighted Average Cost of Capital
The WACC of SStartrade Tech Inc (SSTT) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.8% | 8.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.2% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.65 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.2% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SSTT | SStartrade Tech Inc | 3.83 | -40.29 | -10.62 |
| AGD.V | Antioquia Gold Inc (Pre-Reincorporation) | 28.7 | 0.29 | 0.01 |
| ALTA.V | Altamira Gold Corp | 0.01 | 0.49 | 0.49 |
| GRC.TO | Gold Springs Resource Corp | 0 | 0.28 | 0.28 |
| IVS.V | Inventus Mining Corp | 0.01 | -1.35 | -1.34 |
| MAE.V | Maritime Resources Corp | 0 | 0.85 | 0.85 |
| OMM.V | Omineca Mining and Metals Ltd | 0.85 | -0.51 | -0.31 |
| RGD.V | Reunion Gold Corp | 0 | 0.87 | 0.87 |
| RML.V | Rusoro Mining Ltd | 0.12 | 1.14 | 1.05 |
| RPX.V | Red Pine Exploration Inc | 0 | 1.74 | 1.74 |
| SOI.V | Sirios Resources Inc | 0.01 | 0.28 | 0.28 |
| Low | High | |
| Unlevered beta | 0.28 | 0.49 |
| Relevered beta | 0.48 | 1.09 |
| Adjusted relevered beta | 0.65 | 1.06 |
SSTT'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 SSTT:
cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.