UPCO.CN WACC - Weighted Average Cost of Capital
The WACC of Upco International Inc (UPCO.CN) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.7% | 7.95% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.6 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.7% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UPCO.CN | Upco International Inc | 0.05 | 1.17 | 1.13 |
| ALSK | Alaska Communications Systems Group Inc | 0.91 | 1.48 | 0.89 |
| CVST | Covista Communications Inc | 98.66 | 0 | 0 |
| HMMR | Hammer Fiber Optics Holdings Corp | 1.05 | -5.16 | -2.91 |
| LICT | LICT Corp | 0.24 | -0.02 | -0.02 |
| NTLK | Net Talk.com Inc | 25258.92 | 0 | 0 |
| NUVR | Nuvera Communications Inc | 2.62 | -0.02 | -0.01 |
| SGRB | SigmaBroadband Co | 1.46 | -0.75 | -0.36 |
| SIFY | Sify Technologies Ltd | 1.02 | 0.03 | 0.02 |
| TPTW | TPT Global Tech Inc | 14.45 | 23.54 | 2.03 |
| Low | High | |
| Unlevered beta | 0 | 0.01 |
| Relevered beta | 0.4 | 0.91 |
| Adjusted relevered beta | 0.6 | 0.94 |
UPCO.CN'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 UPCO.CN:
cost_of_equity (7.95%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.6) + 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.