The WACC of Zoomd Technologies Ltd (ZOMD.V) is 8.8%.
Range | Selected | |
Cost of equity | 7.7% - 10.2% | 8.95% |
Tax rate | 0.1% - 0.3% | 0.2% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.6% - 10.0% | 8.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.75 | 0.87 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.7% | 10.2% |
Tax rate | 0.1% | 0.3% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.6% | 10.0% |
Selected WACC | 8.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ZOMD.V | Zoomd Technologies Ltd | 0.03 | 2 | 1.94 |
BEW.V | Bewhere Holdings Inc | 0.01 | 0.62 | 0.61 |
INUV | Inuvo Inc | 0 | 1.49 | 1.49 |
ISDR | Issuer Direct Corp | 0.54 | 0.96 | 0.62 |
MFH | Mercurity Fintech Holding Inc | 0.03 | 1.06 | 1.04 |
NCI.V | NTG Clarity Networks Inc | 0.07 | 0.64 | 0.6 |
NTWK | NetSol Technologies Inc | 0.17 | 0.62 | 0.53 |
PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
SEB.V | Smart Employee Benefits Inc | 0.54 | 1.56 | 1.01 |
TEUM | Pareteum Corp | 206.35 | 0.8 | 0 |
Low | High | |
Unlevered beta | 0.61 | 0.78 |
Relevered beta | 0.63 | 0.81 |
Adjusted relevered beta | 0.75 | 0.87 |
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 ZOMD.V:
cost_of_equity (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.