ABCT.TO WACC - Weighted Average Cost of Capital

The WACC of Abc Technologies Holdings Inc (ABCT.TO) is 10.1%.

The Cost of Equity of Abc Technologies Holdings Inc (ABCT.TO) is 10.30%.

The Cost of Debt of Abc Technologies Holdings Inc (ABCT.TO) is 11.50%.

	Range	Selected
Cost of equity	9.10% - 11.50%	10.30%
Tax rate	9.90% - 15.20%	12.55%
Cost of debt	8.10% - 14.90%	11.50%
WACC	8.0% - 12.2%	10.1%

WACC

ABCT.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.17	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.50%

Tax rate	9.90%	15.20%
Debt/Equity ratio	1.4	1.4
Cost of debt	8.10%	14.90%

After-tax WACC	8.0%	12.2%


Selected WACC	10.1%

ABCT.TO'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 ABCT.TO:

cost_of_equity (10.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.17) + 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.