STWC WACC - Weighted Average Cost of Capital
The WACC of STWC Holdings Inc (STWC) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 810.7% | 408% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 5.3% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.32 | 143.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 810.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 4505.53 | 4505.53 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 5.3% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STWC | STWC Holdings Inc | 4505.53 | 34.14 | 0.01 |
| ATIF | ATIF Holdings Ltd | 0.02 | -0.44 | -0.43 |
| BLGV.CN | Belgravia Hartford Capital Inc | 0.01 | 0.61 | 0.6 |
| ENCC | Encompass Compliance Corp | 13.2 | 1.73 | 0.16 |
| MRMD | Marimed Inc | 2.9 | 1.02 | 0.33 |
| OPMZ | 1PM Industries Inc | 0.02 | 0 | 0 |
| PCMC | Public Company Management Corp | 0.07 | -1.01 | -0.96 |
| SGSI | Spectrum Global Solutions Inc | 0.54 | -0.77 | -0.55 |
| WSCO | Wall Street Media Co Inc | 0 | 0.38 | 0.37 |
| Low | High | |
| Unlevered beta | 0 | 0.13 |
| Relevered beta | -0.01 | 214.3 |
| Adjusted relevered beta | 0.32 | 143.91 |
STWC'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 STWC:
cost_of_equity (408.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.