TGHI WACC - Weighted Average Cost of Capital
The WACC of Touchpoint Group Holdings Inc (TGHI) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.1% - 22.2% | 13.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 5.1% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -3.1 | 0.33 |
| Additional risk adjustments | 15.5% | 16.0% |
| Cost of equity | 5.1% | 22.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 729.12 | 729.12 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 5.1% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TGHI | Touchpoint Group Holdings Inc | 729.12 | -37.83 | -0.07 |
| APPZ | Monster Arts Inc | 345.02 | 0 | 0 |
| APTY | APT Systems Inc | 0.34 | -0.02 | -0.02 |
| AVOI | Advanced Voice Recognition Systems Inc | 0 | -0.88 | -0.88 |
| GFGU | GetFugu Inc | 9.73 | 0 | 0 |
| MYSZ | My Size Inc | 0.06 | 0.17 | 0.16 |
| RIHT | Rightscorp Inc | 0.01 | -0.54 | -0.54 |
| TRAD.V | Voleo Trading Systems Inc | 0.01 | 1.06 | 1.05 |
| Low | High | |
| Unlevered beta | -0.03 | 0 |
| Relevered beta | -5.12 | 0 |
| Adjusted relevered beta | -3.1 | 0.33 |
TGHI'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 TGHI:
cost_of_equity (13.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-3.1) + risk_adjustments (15.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.