VYND WACC - Weighted Average Cost of Capital
The WACC of Vynleads Inc (VYND) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.9% | 6.15% |
| Tax rate | 0.5% - 0.8% | 0.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.9% |
| Tax rate | 0.5% | 0.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VYND | Vynleads Inc | 0.01 | 5.18 | 5.14 |
| AHIX | ALUF Holdings Inc | 0.04 | -1.21 | -1.17 |
| BABL | Buildablock Corp. | 0 | -0.03 | -0.03 |
| BXV.CN | Bexar Ventures Inc | 0.06 | 0.95 | 0.9 |
| NUGN | NuGene International Inc | 3.75 | 1.22 | 0.26 |
| OTOW | O2 Secure Wireless Inc | 3160.34 | 0.88 | 0 |
| SRCO | Sparta Commercial Services Inc | 1.29 | 0.67 | 0.29 |
| TLFX | Telefix Communications Holdings Inc | 0.05 | -0.42 | -0.4 |
| Low | High | |
| Unlevered beta | 0 | 0.27 |
| Relevered beta | 0 | 0.06 |
| Adjusted relevered beta | 0.33 | 0.37 |
VYND'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 VYND:
cost_of_equity (6.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.