WELX WACC - Weighted Average Cost of Capital
The WACC of Winland Holdings Corp (WELX) is 4.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.2% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.2% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WELX | Winland Holdings Corp | 0 | 0.4 | 0.4 |
| ACU.V | Aurora Solar Technologies Inc | 0.17 | 2.09 | 1.86 |
| DPLS | Darkpulse Inc | 0.58 | 0.01 | 0.01 |
| ESNR | Electronic Sensor Technology Inc | 12277.67 | -0.15 | 0 |
| IMTE | Integrated Media Technology Ltd | 2.19 | -0.87 | -0.34 |
| SMIT | Schmitt Industries Inc | 42.8 | 0.84 | 0.03 |
| SNSGF | Sense Technologies Inc | 151016.06 | 0 | 0 |
| TEST.V | FluroTech Ltd | 0.27 | -0.59 | -0.49 |
| TLA.V | Titan Logix Corp | 0.03 | 0.59 | 0.58 |
| VSYM | View Systems Inc | 1.22 | 1.04 | 0.55 |
| VSYS | Viscount Systems Inc | 2921.68 | -1.21 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0.03 |
| Relevered beta | 0 | 0.03 |
| Adjusted relevered beta | 0.33 | 0.35 |
WELX'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 WELX:
cost_of_equity (6.10%) = 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.