USLG
US Lighting Group Inc
Price:  
0.00 
USD
Volume:  
78,550.00
United States | N/A
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USLG WACC - Weighted Average Cost of Capital

The WACC of US Lighting Group Inc (USLG) is 3.9%.

The Cost of Equity of US Lighting Group Inc (USLG) is 6.55%.
The Cost of Debt of US Lighting Group Inc (USLG) is 5.00%.

Range Selected
Cost of equity 3.00% - 10.10% 6.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.6% - 4.1% 3.9%
WACC

USLG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -0.94 0.31
Additional risk adjustments 3.5% 4.0%
Cost of equity 3.00% 10.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 13.99 13.99
Cost of debt 5.00% 5.00%
After-tax WACC 3.6% 4.1%
Selected WACC 3.9%

USLG'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 USLG:

cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.94) + risk_adjustments (3.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.