SVLT WACC - Weighted Average Cost of Capital
The WACC of Sunvault Energy Inc (SVLT) is 9.5%.
| Range | Selected | |
| Cost of equity | 14.9% - 21.0% | 17.95% |
| Tax rate | 0.5% - 0.6% | 0.55% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 8.8% - 10.1% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.41 | 2.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.9% | 21.0% |
| Tax rate | 0.5% | 0.6% |
| Debt/Equity ratio | 3.42 | 3.42 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 8.8% | 10.1% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SVLT | Sunvault Energy Inc | 3.42 | -0.12 | -0.03 |
| Low | High | |
| Unlevered beta | -0.03 | -0.03 |
| Relevered beta | 3.1 | 3.82 |
| Adjusted relevered beta | 2.41 | 2.89 |
SVLT'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 SVLT:
cost_of_equity (17.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.41) + 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.