TWSI
Inveritech Solutions Inc
Price:  
0.09 
USD
Volume:  
1,290.00
United States | Personal Products
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TWSI WACC - Weighted Average Cost of Capital

The WACC of Inveritech Solutions Inc (TWSI) is 4.2%.

The Cost of Equity of Inveritech Solutions Inc (TWSI) is 6.25%.
The Cost of Debt of Inveritech Solutions Inc (TWSI) is 5.00%.

Range Selected
Cost of equity 5.40% - 7.10% 6.25%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.1% - 4.4% 4.2%
WACC

TWSI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.7 3.7
Cost of debt 5.00% 5.00%
After-tax WACC 4.1% 4.4%
Selected WACC 4.2%

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 (6.25%) = 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.