ZIVO
Zivo Bioscience Inc
Price:  
1.10 
Volume:  
56,483.00
United States | Personal Products
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ZIVO WACC - Weighted Average Cost of Capital

The WACC of Zivo Bioscience Inc (ZIVO) is 7.0%.

The Cost of Equity of Zivo Bioscience Inc (ZIVO) is 7.00%.
The Cost of Debt of Zivo Bioscience Inc (ZIVO) is 8.75%.

Range Selected
Cost of equity 5.50% - 8.50% 7.00%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 10.50% 8.75%
WACC 5.5% - 8.5% 7.0%
WACC

ZIVO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.25 0.57
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.50% 8.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0 0
Cost of debt 7.00% 10.50%
After-tax WACC 5.5% 8.5%
Selected WACC 7.0%

ZIVO'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 ZIVO:

cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.25) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.