TURV WACC - Weighted Average Cost of Capital
The WACC of Two Rivers Water & Farming Co (TURV) is 5.4%.
| Range | Selected | |
| Cost of equity | 21.4% - 41.3% | 31.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 6.5% - 7.0% | 6.75% |
| WACC | 5.1% - 5.7% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 3.82 | 6.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 21.4% | 41.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 62.58 | 62.58 |
| Cost of debt | 6.5% | 7.0% |
| After-tax WACC | 5.1% | 5.7% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TURV | Two Rivers Water & Farming Co | 62.58 | 1.03 | 0.02 |
| ABCP | AmBase Corp | 0.13 | 0.36 | 0.33 |
| BRRE | Blue Ridge Real Estate Co | 0 | 0.13 | 0.13 |
| FUTL | FutureLand Corp | 56.36 | -1.02 | -0.02 |
| HOOB | Holobeam Inc | 1.09 | 0.11 | 0.06 |
| HTSC | Here To Serve Holding Corp | 0.09 | 0.9 | 0.85 |
| UFC.V | Urbanfund Corp | 1.2 | 0.24 | 0.13 |
| VCOM.V | Vivere Communities Inc | 2.31 | 1.06 | 0.4 |
| ZDPY | Zoned Properties Inc | 1.44 | 0.61 | 0.3 |
| Low | High | |
| Unlevered beta | 0.13 | 0.26 |
| Relevered beta | 5.21 | 9.22 |
| Adjusted relevered beta | 3.82 | 6.51 |
TURV'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 TURV:
cost_of_equity (31.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.82) + 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.