TWSI WACC - Weighted Average Cost of Capital
The WACC of Inveritech Solutions Inc (TWSI) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.1% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.21 | 1.21 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.1% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TWSI | Inveritech Solutions Inc | 1.21 | -11.17 | -5.94 |
| EMPO | Empowered Products Inc | 0.14 | 0 | 0 |
| EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.17 | 0.17 |
| GRCU | Green Cures & Botanical Distribution Inc | 5.94 | 0.73 | 0.14 |
| NUVM | NuVim Inc | 0.48 | -0.5 | -0.37 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| TDNT | Trident Brands Inc | 5976.95 | -1.27 | 0 |
| VPI.V | Vitality Products Inc | 0 | -0.51 | -0.51 |
| Low | High | |
| Unlevered beta | 0 | 0.02 |
| Relevered beta | 0 | 0.03 |
| Adjusted relevered beta | 0.33 | 0.35 |
TWSI'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 TWSI:
cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.