TCCR WACC - Weighted Average Cost of Capital
The WACC of Triccar Inc (TCCR) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.8% | 8.1% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.77 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.8% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TCCR | Triccar Inc | 0.94 | -1.06 | -0.63 |
| ACUR | Acura Pharmaceuticals Inc | 0.15 | -13 | -11.72 |
| APPB | Applied Biosciences Corp | 1772.92 | 0.22 | 0 |
| AVCN.TO | Avicanna Inc | 0.07 | 1.88 | 1.79 |
| BETR.CN | BetterLife Pharma Inc | 0.08 | -0.15 | -0.14 |
| BTHE | Boston Therapeutics Inc | 0.44 | 0.22 | 0.17 |
| CBGL | Cannabis Global, Inc. | 59.31 | 167.54 | 3.78 |
| EYEG | EyeGate Pharmaceuticals Inc | 0.01 | 0.77 | 0.76 |
| GBLX | GB Sciences Inc | 21.61 | -90.87 | -5.42 |
| NPTX | Neuropathix Inc | 67.83 | 1.83 | 0.04 |
| TMBR | Timber Pharmaceuticals Inc | 0.81 | -0.55 | -0.35 |
| Low | High | |
| Unlevered beta | -0.14 | 0.04 |
| Relevered beta | 0.66 | 1.12 |
| Adjusted relevered beta | 0.77 | 1.08 |
TCCR'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 TCCR:
cost_of_equity (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.77) + 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.