TACI WACC - Weighted Average Cost of Capital
The WACC of TransAtlantic Capital Inc (TACI) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.3% | 10.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 8.0% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.17 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 8.0% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TACI | TransAtlantic Capital Inc | 0.95 | -46990.94 | -27727.72 |
| CNSC | CannAssist International Corp | 0.01 | 0.99 | 0.99 |
| DOSE.CN | Rapid Dose Therapeutics Corp | 0.08 | -0.33 | -0.31 |
| FWAV | Fourth Wave Energy Inc | 0.15 | 0.91 | 0.82 |
| INEO.V | INEO Tech Corp | 0.37 | 1.04 | 0.82 |
| LLP.CN | LeanLife Health Inc | 0.05 | 0.6 | 0.58 |
| PACR.CN | Pac Roots Cannabis Corp | 0.04 | 1.07 | 1.03 |
| PREV.CN | Preveceutical Medical Inc | 0.26 | 0.08 | 0.07 |
| PURX.V | Pure Extraction Corp | 0 | 0.93 | 0.93 |
| RMHB | Rocky Mountain High Brands Inc | 0.47 | 0.03 | 0.03 |
| TBI.CN | Thoughtful Brands Inc | 0.04 | 0.94 | 0.91 |
| Low | High | |
| Unlevered beta | 0.58 | 0.82 |
| Relevered beta | 1.25 | 1.49 |
| Adjusted relevered beta | 1.17 | 1.33 |
TACI'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 TACI:
cost_of_equity (10.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.17) + 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.