TDNT WACC - Weighted Average Cost of Capital
The WACC of Trident Brands Inc (TDNT) is 3.3%.
| Range | Selected | |
| Cost of equity | 262.1% - 1642.6% | 952.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.0% - 3.6% | 3.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 56.15 | 292.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 262.1% | 1642.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 5976.95 | 5976.95 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.0% | 3.6% |
| Selected WACC | 3.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TDNT | Trident Brands Inc | 5976.95 | -1.27 | 0 |
| EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.12 | 0.12 |
| GRCU | Green Cures & Botanical Distribution Inc | 2.97 | 0.96 | 0.3 |
| MIMI.V | Mimi's Rock Corp | 1.89 | 0.41 | 0.17 |
| NUVM | NuVim Inc | 0.48 | -0.5 | -0.37 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| VPI.V | Vitality Products Inc | 0 | -0.56 | -0.56 |
| YGYI | Youngevity International Inc | 67.57 | 0.95 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.1 |
| Relevered beta | 83.31 | 436.01 |
| Adjusted relevered beta | 56.15 | 292.46 |
TDNT'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 TDNT:
cost_of_equity (952.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (56.15) + 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.