WCIG WACC - Weighted Average Cost of Capital
The WACC of Wee-Cig International Corp (WCIG) is 5.6%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.0% | 7.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.3% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.51 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.3% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WCIG | Wee-Cig International Corp | 1.16 | 1.14 | 0.62 |
| IMNPQ | Immune Pharmaceuticals Inc | 27.49 | 1.53 | 0.07 |
| MO | Altria Group Inc | 0.25 | -0.02 | -0.02 |
| NHLE | Nhale Inc | 0.72 | 1.01 | 0.66 |
| PM | Philip Morris International Inc | 0.16 | 0.04 | 0.04 |
| RLX | RLX Technology Inc | 0.01 | 0.48 | 0.48 |
| TPB | Turning Point Brands Inc | 0.19 | 0.63 | 0.55 |
| TRIP.CN | Red Light Holland Corp | 0.14 | 1.51 | 1.37 |
| UVV | Universal Corp | 0.74 | 0.31 | 0.2 |
| VHUB | Vapor Hub International Inc | 3.84 | 1.04 | 0.27 |
| WGEI | WindGen Energy Inc | 890.44 | -0.17 | 0 |
| Low | High | |
| Unlevered beta | 0.2 | 0.48 |
| Relevered beta | 0.27 | 0.61 |
| Adjusted relevered beta | 0.51 | 0.74 |
WCIG'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 WCIG:
cost_of_equity (7.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.51) + 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.