The WACC of WU BA Superior Products Holding Group Inc (WBWB) is 3.9%.
Range | Selected | |
Cost of equity | 3.2% - 10.2% | 6.7% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.6% - 4.2% | 3.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | -0.91 | 0.33 |
Additional risk adjustments | 3.5% | 4.0% |
Cost of equity | 3.2% | 10.2% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 10.72 | 10.72 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.6% | 4.2% |
Selected WACC | 3.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.02 |
CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.83 |
DGTW | DigitalTown Inc | 429.14 | 0 | 0 |
EVTI | Eventure Interactive Inc | 643.34 | 0.94 | 0 |
FLYY.CN | Media Central Corporation Inc | 0.26 | -0.24 | -0.2 |
ILIM | Il2m International Corp | 1.97 | -0.54 | -0.22 |
MBO.V | Mobio Technologies Inc | 0.71 | -0.39 | -0.26 |
MKT.V | Deepmarkit Corp | 0.08 | 0.71 | 0.67 |
MYID.V | Killi Ltd | 0.08 | 1.48 | 1.4 |
WDDD | Worlds Inc | 1.78 | -1.97 | -0.85 |
Low | High | |
Unlevered beta | -0.21 | 0 |
Relevered beta | -1.85 | 0 |
Adjusted relevered beta | -0.91 | 0.33 |
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 WBWB:
cost_of_equity (6.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.91) + 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.