ADPT.CN
Adaptogenics Health Corp
Price:  
0.04 
CAD
Volume:  
4,060.00
Canada | N/A
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ADPT.CN WACC - Weighted Average Cost of Capital

The WACC of Adaptogenics Health Corp (ADPT.CN) is 3.5%.

The Cost of Equity of Adaptogenics Health Corp (ADPT.CN) is 3.25%.
The Cost of Debt of Adaptogenics Health Corp (ADPT.CN) is 5.00%.

Range Selected
Cost of equity 3.10% - 3.40% 3.25%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.6% - 3.4% 3.5%
WACC

ADPT.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -1.32 -1.32
Additional risk adjustments 7.0% 7.5%
Cost of equity 3.10% 3.40%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 3.6% 3.4%
Selected WACC 3.5%

ADPT.CN'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 ADPT.CN:

cost_of_equity (3.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-1.32) + risk_adjustments (7.25%)

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