ADK.V
Diagnos Inc
Price:  
0.21 
CAD
Volume:  
14,271.00
Canada | Health Care Technology
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ADK.V WACC - Weighted Average Cost of Capital

The WACC of Diagnos Inc (ADK.V) is 6.3%.

The Cost of Equity of Diagnos Inc (ADK.V) is 6.30%.
The Cost of Debt of Diagnos Inc (ADK.V) is 7.90%.

Range Selected
Cost of equity 4.90% - 7.70% 6.30%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 8.80% 7.90%
WACC 5.0% - 7.6% 6.3%
WACC

ADK.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.11 0.39
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.90% 7.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.16 0.16
Cost of debt 7.00% 8.80%
After-tax WACC 5.0% 7.6%
Selected WACC 6.3%

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 (6.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.11) + 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.