UNEX WACC - Weighted Average Cost of Capital
The WACC of Unex Holdings Inc (UNEX) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.4% | 7.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.41 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UNEX | Unex Holdings Inc | 0 | 1.09 | 1.09 |
| EHVVF | Ehave Inc | 2.66 | 211.51 | 71.97 |
| FFLO | Free Flow Inc | 0.28 | -0.79 | -0.65 |
| FIFG | First Foods Group Inc | 441.39 | -91.29 | -0.28 |
| FNAM | Evolutionary Genomics Inc | 2810.62 | -0.73 | 0 |
| HALB | Halberd Corp | 1.17 | 0.98 | 0.53 |
| ITOX | Iiot-Oxys Inc | 0.99 | 1.17 | 0.68 |
| RGIN | Regenicin Inc | 4188.95 | -96.99 | -0.03 |
| RJDG | RJD Green Inc | 0.16 | 0.77 | 0.69 |
| TMED.CN | EGF Theramed Health Corp | 1.75 | 0.55 | 0.24 |
| Low | High | |
| Unlevered beta | 0.15 | 0.59 |
| Relevered beta | 0.12 | 0.55 |
| Adjusted relevered beta | 0.41 | 0.7 |
UNEX'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 UNEX:
cost_of_equity (7.80%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.41) + 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.