TMG.V WACC - Weighted Average Cost of Capital

The WACC of Thermal Energy International Inc (TMG.V) is 8.1%.

The Cost of Equity of Thermal Energy International Inc (TMG.V) is 6.90%.

The Cost of Debt of Thermal Energy International Inc (TMG.V) is 14.80%.

	Range	Selected
Cost of equity	5.50% - 8.30%	6.90%
Tax rate	4.60% - 8.60%	6.60%
Cost of debt	8.70% - 20.90%	14.80%
WACC	6.0% - 10.1%	8.1%

WACC

TMG.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	8.30%

Tax rate	4.60%	8.60%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.70%	20.90%

After-tax WACC	6.0%	10.1%


Selected WACC	8.1%

TMG.V'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 TMG.V:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.