ADK.V WACC - Weighted Average Cost of Capital
The WACC of Diagnos Inc (ADK.V) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.4% | 6.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.9% | 7.45% |
| WACC | 5.1% - 7.2% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.24 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 7.0% | 7.9% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADK.V | Diagnos Inc | 0.13 | 0.41 | 0.38 |
| ADHC | American Diversified Holdings Corp | 0.06 | 0.17 | 0.16 |
| CRVW | CareView Communications Inc | 1.38 | 0.47 | 0.24 |
| CSOC | Caduceus Software Systems Corp | 0.02 | -0.76 | -0.75 |
| CYCA | Cytta Corp | 0.17 | 0.09 | 0.08 |
| MITI | Mitesco Inc | 0.38 | -1.16 | -0.91 |
| MOST | MobileSmith Inc | 0.08 | -0.69 | -0.65 |
| SPOM | SPO Global Inc | 13.51 | 0.42 | 0.04 |
| VGL.V | Vigil Health Solutions Inc | 0.03 | 0.57 | 0.55 |
| VMCS | VisualMED Clinical Solutions Corp | 0.55 | -0.51 | -0.36 |
| Low | High | |
| Unlevered beta | -0.12 | 0.11 |
| Relevered beta | -0.13 | 0.12 |
| Adjusted relevered beta | 0.24 | 0.41 |
ADK.V'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 ADK.V:
cost_of_equity (6.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.24) + 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.