TAUG WACC - Weighted Average Cost of Capital
The WACC of Tauriga Sciences Inc (TAUG) is 9.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 510.8% | 258% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 18.8% | 12.9% |
| WACC | 5.2% - 14.0% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -36.88 | 59.81 |
| Additional risk adjustments | 171.0% | 171.5% |
| Cost of equity | 5.2% | 510.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1683.25 | 1683.25 |
| Cost of debt | 7.0% | 18.8% |
| After-tax WACC | 5.2% | 14.0% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TAUG | Tauriga Sciences Inc | 1683.25 | -1.37 | 0 |
| BEV.CN | Bevcanna Enterprises Inc | 0.52 | -1.57 | -1.14 |
| BUX.CN | BioMark Diagnostics Inc | 0.03 | -0.28 | -0.27 |
| COVE.CN | Cover Technologies Inc | 0.06 | -0.12 | -0.11 |
| IZO.CN | Izotropic Corp | 0.1 | -0.27 | -0.26 |
| MYM.CN | MYM Nutraceuticals Inc | 0.01 | 0.92 | 0.92 |
| NUMD | Nu-Med Plus Inc | 0.02 | 1.88 | 1.85 |
| PILL.CN | Canntab Therapeutics Ltd | 9.46 | 1.7 | 0.22 |
| PRT.CN | Plymouth Rock Technologies Inc | 0.04 | 0.12 | 0.12 |
| USLG | US Lighting Group Inc | 13.99 | 0.47 | 0.04 |
| Low | High | |
| Unlevered beta | -0.05 | 0.07 |
| Relevered beta | -55.54 | 88.78 |
| Adjusted relevered beta | -36.88 | 59.81 |
TAUG'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 TAUG:
cost_of_equity (258.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-36.88) + risk_adjustments (171.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.