TRBD WACC - Weighted Average Cost of Capital
The WACC of Turbodyne Technologies Inc (TRBD) is 5.4%.
| Range | Selected | |
| Cost of equity | 48.5% - 613.1% | 330.8% |
| Tax rate | 0.0% - 0.1% | 0.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 5.8% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 9.7 | 108.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 48.5% | 613.1% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 729.16 | 729.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 5.8% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TRBD | Turbodyne Technologies Inc | 729.16 | 0 | 0 |
| ESWW | Environmental Solutions Worldwide Inc | 42548.29 | -0.56 | 0 |
| FSCR | Federal Screw Works | 1.22 | 0.06 | 0.03 |
| OMTK | Omnitek Engineering Corp | 0.59 | 0.1 | 0.06 |
| SSA.V | Spectra Products Inc | 0.08 | 0.67 | 0.62 |
| STRT | Strattec Security Corp | 0.06 | 1.32 | 1.24 |
| VC | Visteon Corp | 0.13 | 0.52 | 0.46 |
| WARM | Cool Technologies Inc | 4232.52 | 0.05 | 0 |
| WKHS | Workhorse Group Inc | 1.3 | 1.57 | 0.68 |
| Low | High | |
| Unlevered beta | 0.04 | 0.38 |
| Relevered beta | 13.99 | 161.61 |
| Adjusted relevered beta | 9.7 | 108.61 |
TRBD'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 TRBD:
cost_of_equity (330.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (9.7) + 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.