USEI
US Energy Initiatives Corporation Inc
Price:  
0.00 
USD
Volume:  
83,510.00
United States | Machinery
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USEI WACC - Weighted Average Cost of Capital

The WACC of US Energy Initiatives Corporation Inc (USEI) is 5.4%.

The Cost of Equity of US Energy Initiatives Corporation Inc (USEI) is 296.80%.
The Cost of Debt of US Energy Initiatives Corporation Inc (USEI) is 5.00%.

Range Selected
Cost of equity 203.80% - 389.80% 296.80%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 5.9% 5.4%
WACC

USEI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 43.47 68.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 203.80% 389.80%
Tax rate 26.20% 27.00%
Debt/Equity ratio 168.56 168.56
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 5.9%
Selected WACC 5.4%

USEI'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 USEI:

cost_of_equity (296.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (43.47) + 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.