VTX.V WACC - Weighted Average Cost of Capital
The WACC of Vertex Resource Group Ltd (VTX.V) is 9.3%.
| Range | Selected | |
| Cost of equity | 9.8% - 16.3% | 13.05% |
| Tax rate | 16.6% - 23.6% | 20.1% |
| Cost of debt | 6.2% - 15.6% | 10.9% |
| WACC | 6.0% - 12.7% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.16 | 1.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 16.3% |
| Tax rate | 16.6% | 23.6% |
| Debt/Equity ratio | 4.69 | 4.69 |
| Cost of debt | 6.2% | 15.6% |
| After-tax WACC | 6.0% | 12.7% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VTX.V | Vertex Resource Group Ltd | 4.69 | -0.26 | -0.06 |
| ACU | Acme United Corp | 0.17 | 0.5 | 0.44 |
| APGI | American Power Group Corp | 0.38 | -0.08 | -0.07 |
| BDI.TO | Black Diamond Group Ltd | 0.39 | 0.89 | 0.69 |
| BRM.V | Biorem Inc | 0.09 | 0.97 | 0.9 |
| MEEC | Midwest Energy Emissions Corp | 0.18 | 0.54 | 0.47 |
| QRHC | Quest Resource Holding Corp | 1.83 | 1.3 | 0.54 |
| SLUP | Solucorp Industries Ltd | 0.09 | 0 | 0 |
| TOMZ | TOMI Environmental Solutions Inc | 0.12 | 0.86 | 0.79 |
| USRI | USA Recycling Industries Inc | 0.27 | -0.19 | -0.15 |
| Low | High | |
| Unlevered beta | 0.27 | 0.5 |
| Relevered beta | 1.24 | 2.31 |
| Adjusted relevered beta | 1.16 | 1.88 |
VTX.V'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 VTX.V:
cost_of_equity (13.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.