The WACC of Vystar Corp (VYST) is 5.2%.
Range | Selected | |
Cost of equity | 5.1% - 7.3% | 6.2% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 4.1% - 6.3% | 5.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.27 | 0.43 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.1% | 7.3% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.82 | 0.82 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 4.1% | 6.3% |
Selected WACC | 5.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VYST | Vystar Corp | 0.82 | -3.91 | -2.45 |
ADMT | ADM Tronics Unlimited Inc | 0.15 | -0.12 | -0.11 |
CHCC | China Chemical Corp | 2.04 | 0.26 | 0.11 |
CRKN | Crown Electrokinetics Corp. | 0.19 | 1.07 | 0.95 |
FFHL | Fuwei Films (Holdings) Co Ltd | 0 | 0.91 | 0.91 |
GDNP.V | Good Natured Products Inc | 34.63 | -1.11 | -0.04 |
GLGI | Greystone Logistics Inc | 0.38 | -0.1 | -0.08 |
GURE | Gulf Resources Inc | 0.13 | -0.9 | -0.82 |
KBLB | Kraig Biocraft Laboratories Inc | 0.02 | 0.24 | 0.23 |
MX.TO | Methanex Corp | 1.43 | 1.94 | 0.95 |
PRH.V | Pearl River Holdings Ltd | 1.91 | -0.45 | -0.19 |
Low | High | |
Unlevered beta | -0.08 | 0.11 |
Relevered beta | -0.09 | 0.15 |
Adjusted relevered beta | 0.27 | 0.43 |
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 VYST:
cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.27) + 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.